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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 Project B Initial investment $(184,325) $(151,960) Expected net cash flows in: Year 1 41,000 39,000 Year 2 49,000 51,000 Year 3 89, 295 64,000 93,400 75,000 Year 5 69,000 27,000 Year 4 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 $ 184,325 Chart Values are Based on: % Year Cash Inflow X PV Factor Present Value 1 2 4 5 Initial investment Year Project B $ 151,960 Cash Inflow X PV Factor Present Value 1 Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 184,325 Chart Values are Based on: i = % Year Cash Inflow X PV Factor = Present Value 1 2 3 11111111 4 5 Project B $ 151,960 Initial Investment Year Cash Inflow X PV Factor Present Value 1 2 3 4 5 Route Required B > 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 $11 (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $(184,325) $(151,960) Expected net cash flows in: Year 1 41,000 39,000 Year 2 49,000 51,000 Year 3 89, 295 64,000 Year 4 93,400 75,000 Year 5 69,000 27,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitabillty 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 1 Choose Denominator: Choose Numerator: Profitability Index Profitability Index 0 Project A Project B of the company can only select one project, which should it choose? Required A

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