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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. (PV of $1. EV

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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. (PV of $1. EV of $1. PVA of $1, and FVA of $ (Use appropriate factor(s) from the tables provided.) Project A $(187,325) Initial investment Expected net cash flows int Year 1 Projects 54155,960) Year 2 Year Year 4 36 one 57,00 76,295 81 480 $5 be $7, cee 55.000 27,00 26,00 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 choose Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 187,325 Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value Initial Investment Year Cash Inflow Project B 155.080 PV Factor Present Value Required B ) 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 Denominator Choose Numerator: - = Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose? Required A

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