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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

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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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(175,325) Project B $(154,960) Initial investment Expected net cash flows in year: 36,000 48,000 82,295 91,400 64,000 27,000 55,000 57,000 68,000 34,000 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 $ 175,325 Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value Year Cash Inflow X PV Factor = Present Value Initial Investment Year Cash Inflow Project B $ 154,960 X PV Factor = Present Value Required A Required B > Exercise 11-10 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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(175,325) Project B $(154,960) Initial investment Expected net cash flows in year: 36,000 48,000 82,295 91,400 64,000 27,000 55,000 57,000 68,000 34,000 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 T Choose Denominator: Choose Numerator: = Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose? 0

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