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% return from its investments. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project $(152,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(181,325) 45,000 49.000 88,295 88,460 73,000 32, eee 43,eee 58,000 82,000 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. Project A Initial Investment $ 181,325 Chart Values are Based on: % Year Cash flow PV Fado 1 2 3 Present Value Project A Initial Investment $ 181,325 Chart Values are Based on: i = % Year Cash Inflow X PV Factor 11 Present Value 1 11 2 11 3 11 4 11 5 II $ Initial Investment Year Cash Inflow Project B 152,960 X PV Factor Present Value 1 II 2. 3 II 4 HII 5 Year 3 Year 4 Year 5 88,295 88,400 73,000 58, eee 82,eee 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? 0:48 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 Choose Denominator: Choose Numerator: Profitability Index Profitability Index nces Project A Project B of the company can only select one project, which should it choose? Required A RUB