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 approprlate factor(s) from the tables provided.) Project A $(176,325) Project B $(156,960) Initial investment Expected net cash flows in year: 1 45,e0e 38,e00 2 51,e0e 54,eee 67.e00 81,295 83,400 65,eee 4 73,e0e 21,eee 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 choosse? 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 178,325 Chart Values are Based on: 12% Year Cash Inflow PV Factor Present Value 45.000 x 51,000 x 2 81.295 x 3 83.400 x 4 65.000 x 5 Project B Initial Investment 156,960 Present Value Year Cash Inflow PV Factor 38.000 x 1 54,000 x 2 67.000 x 3 73,000 x 4 21.000 x 5 - Required A Required B> 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 $(176,325) Project B $(156,960) Initial investment Expected net cash flows in year: 38,e00 54,e00 67,eee 73,e0e 45,eee 51.000 81.295 83,400 65,eee 21,eee 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 Choose Numerator: Choose Denominator: Profitability Index Profitability index Project A C Project B 0 If the company can only select one project, which should it choose? Required A Required B >
