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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, FV

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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, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(185,325) Project B $(147,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 44,000 44,000 81,295 87,400 72,000 38, eee 6e, eee 48, eee 74, eee 25, eee o. 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 $ 185,325 Chart Values are Based on: Year Cash Inflow X PV Factor - Present Value 87,400X Initial Investment Year Cash Inflow Project B 147,960 PV Factor X = Present Value 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 proj Complete this question by entering your answers in the tabs below. Required B Required A Required B For each alternative project compute the profitability index. If the company can only select one project, wh 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? 0 Required A

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