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 10% return from its investments. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(177,325) Project B $(149,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 54, eee 53,000 79, 295 95, 4ee 68, eee 43,000 58,000 63,000 79,000 35, eee 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 $ 177,325 Chart Values are Based on: i = % Year Cash Inflow PV Factor = Present Value 1 II N = 3 4 11 II 5 = Project B $ Initial Investment Year Cash Inflow 149,960 PV Factor Present Value 1 N II 3 11 4 = 5 Il 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 B Required A For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Denominator: / Project A Project B If the company can only select one project, which should it choose? Profitability Index Profitability index 0 0