Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% 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.)

Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% 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 $(188,325) Project B $(152,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 40,000 58,000 81, 295 85,400 66,000 40,000 61,000 53,000 73,000 29,000 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? Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 188,325 Chart Values are Based on: % Year Cash Inflow X PV Factor 1 - Present Value 3 5 Initial Investment Year Cash Inflow Project B $ 152,960 PV Factor X - Present Value Present value of cash inflows Present value of cash outflows Net present value For each alternative project compute the profitability index. If the company can only select on choose? Profitability Index Profitability index Profitability Index Choose Numerator: Choose Denominator: = | = Project A Project B If the company can only select one project, which should it choose