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 8% return 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 $(177,325) Project B $(150,960) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Year 4 Year 5 48,000 58,000 88,295 89,400 66,000 29,000 61,000 58,000 77.000 29.000 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 $ 177,325 Chart Values are Based on: % Year Canh loi bai PV Factor 1 Present Value 2 177,325 Initial Investment $ Chart Values are Based on: i = % Year Cash Inflow PV Factor 11 Present Value 1 11 2 3 11111111 4 ch 5 Initial Investment Year Cash Inflow Project B 150,960 X PV Factor Present Value s 1 = 11 2 3 4 111111 5 Following is Information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(177,325) Project B $(150,960) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Year 4 Year 5 48,000 58,000 88,295 89,400 66,000 29,000 61,000 58,000 77,000 29,000 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 Choose Numerator: Choose Denominator: Profitability Index Profitability index Project A Project B 0 If the company can only select one project, which should it choose? 0