Exercise 11-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV OLSI. EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Project Initial investment Projects 51176,325) $(144,960) Expected net cash flove in Year 1 31,000 57.000 49,000 73,000 36,000 Year 2 Year 3 Year 4 Year 5 39,000 47,000 79.295 91,400 65,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value Project Initial Investment 175,325 Chart Values are based on: Cash Inflow PV Factor- Present Value Year 1 2 3 4 Prov 13 Navi 176,325 Initial Investment $ Chart Values are Based on: 1 = % Year Cash Inflow x 1 PV Factor 11 Present Value N 11111111 4 5 11 Initial Investment Project B $ 144,960 PV Factor Year Cash Inflow X Present Value II 11 1 2 = 3 4 III 5 Required Required 8 Years Year 4 Year 5 7,295 91,400 65,000 49,000 73,000 36,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the profitability Index. If the company can only select one project, which should it choose? Profitability Index 1 Choose Denominator: Choose Numerator: Profitability Index Profitability Index Project A Project B of the company can only select one project, which should it choose?