Exercise 24-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% retur from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(180,325) Project B $(145,960) Initial investment Expected net cash flows in year: Hm #on 47,000 57,900 81,295 77,400 69,000 37,000 60,000 49,000 74,000 32,000 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. For each alternative project compute the net present value. Project A Initial Investment $ 180,325 Chart Values are based on: Year Cash Inflow X PV Factor - Present Value Initial Investment Year Cash Inflow Project B $ 145,960 X PV Factor = Present Value Nm #on 57,000 81,295 77,400 69,000 60,000 49,000 74,000 32,000 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 c 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 Profitability index Profitability Index Choose Numerator: 1 Choose Denominator: = = Project AI Project B If the company can only select one project, which should it choose?