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 A $(186,325) Project B $ (157,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 39,000 59,000 81,295 77,400 64,000 38,000 61,000 67,000 79,000 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. 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 $ 186,325 Chart Values are Based on: i = Year Cash Inflow PV Factor Present Value 1 2 3 4 5 Project B $ 157,960 Initial Investment Year Cash Inflow PV Factor Present Value 1 2 = 3 4 5