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Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 10% 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 $(158,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 35,000 44,000 91,295 83,400 68,000 32,000 53,000 66,000 73,000 25,000 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 net present value. Project A Initial Investment $ 188,325 Chart Values are Based on: % Year Cash Inflow x PV Factor 1 II Present Value N w = 4 Il 5 Initial Investment Year Cash Inflow Project B $ 158,960 x PV Factor Present Value 1 Il Il = 2 3 4 5 II Il 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 Numerator: 1 Choose Denominator: = Profitability Index / Profitability index Project A 0 Project B 0 If the company can only select one project, which should it choose?

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