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Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. EV of $1, PV

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Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. EV of $1, PV of Si, FVA of $1 and PVA of $1. (Use appropriate factor(s) from the tables provided.) Project A Project B 5 (182,325) (144.980) nitial investment Expected net cash flows in year: 52,000 53.000 90,295 91.400 83,000 27.000 80,000 88,000 88,000 39,000 1(a) For each alte rnative project compute the net present value. Project A Initial Investment 182.325 hart Values are Based on: YearCash Inflowx 52,000 x 53,000 x 90,295 x 91,400x 83,000x PV factor Present Value 0.9200 0.8400 0.76001 = 0.6800 0.6000 47,480 44,520 38,624 62.152 37.800 260,576 4 decimal places required resent value of cas 260,576 resent value of net cash inflows 182,325 t present value Project E Initial Investment 144.980 Year | Cash Inflow ) PV factor Present Value

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