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. FV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Project A $(185,325) Project $(155,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 45,000 49,000 79,295 79,400 74.000 31,000 47.000 54,000 75,000 25,000 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 For each alternative project compute the net present value. Project A Initial Investment $ 185,325 Chart Values are based on SI Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 185,325 Chart Values are Based on: i = % Year Cash Inflow PV Factor 1 11 Present Value 11 2 3 1111111 4 5 Initial Investment Project B 155,960 PV Factor Year Cash Inflow Present Value 1 11 2 =