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) (Us appropriate factor(s) from the tables provided.) Project A $ (176,325) Project B $ (151,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 36,000 59,000 79,295 94,400 61,000 35,000 45,000 55,000 69,000 34,000 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? Project A nitial Investment $ 176,325 Chart Values are Based on: i = 10% Year Cash Inflow X PV Factor II Present Value 1 36,000 X 2 59,000 x II 3 79,295 x = 4 94,400 x = 5 61,000 x II Present value of cash inflows Present value of cash outflows et present value Initial Investment Project B $ 151,960 PV Factor Year Cash Inflow Present Value 1 2 3 4 5 II For each alternative project compute the profitability index. If the company can only select one proje choose? Profitability Index Choose Numerator: Choose Denominator: Profitability Index Profitability index 1 0 Project A Project B If the company can only select one project, which should it choose? 0