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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
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 $(175,325) Initial investment Expected net cash flows in year: 1 2 3 4 45, eee 56, Bee 88, 295 81,400 59, eee Project B $(156,960) 28,600 54,800 67,800 70,000 36, cee .. 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 S 175,325 Chart Values are Based on: Year Cash Inflow PV Factor Present Value 1 = 2 3 4 5 Initial Investment Project B S 158,980 PV Factor Year Cash Inflow Present Value 1 = 2 3 4 = 5 = Required A 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 $1). (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in year: Project A $(175,325) Project B $(156,960) 1 2 3 4 5 45,000 56,080 88,295 81,480 59,800 28,000 54,800 67,000 70,000 36,000 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? 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 If the company can only select one project, which should it choose? 0
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