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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
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 FVA of $1 (Use approprlate factor(s) from the tables provided.) Project A $(176,325) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,800 45,800 89, 295 80,400 64,800 Project B $(149,968) 30,eee 51, eee 56,00 89, eee 33,00 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 S 178,325 Chart Values are Based on: % Year Cash Inflow X PV Factor Present Value 1 2 3 = 4 = 5 Project B S 149,900 Initial Investment Year Cash Inflow PV Factor Present Value 1 2 = 3 4 5 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 1 Choose Denominator: Choose Numerator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose?
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