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					Project B
Initial investment		$	(179,325	)			$	(146,960	)
Expected net cash flows in year:
1			39,000					45,000
2			59,000					48,000
3			86,295					55,000
4			91,400					84,000
5			59,000					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?

For each alternative project compute the profitability index, if the company can only select one project, which should it choose?

Profitability Index
	Choose Numerator:	/	Choose Denominator:	=	Profitability Index
		/		=	Profitability index
Project A					0
Project B					0
If the company can only select one project, which should it choose?