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Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 6% 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 $(147,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 39, eee 49,000 74,295 81,400 60,60e 31, eee 46. eae 56,00 81, eee 24.ee . 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 S 186,325 Chart Values are Based on: 6% Year Cash Inflow x PV Factor 1 Present Value 2. 3 = 4 5 Initial Investment Year Cash Inflow 1 1 Project B S 147.960 PV Factor Present Value 2. = 3 = 4 = 5 = 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: 1 Choose Denominator: 1 Project A Project B If the company can only select one project, which should it choose? Profitability Index Profitability index 0 0

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