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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 $(188,325) Project 6 $(158,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 54 , 48,000 84, 295 94,4ea 56,000 26, eas 62,800 63,098 77,000 31,99 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 Requined B For each alternative project compute the net present value. Projed. A 188,325 Initial Investment S Chart Values are Based on: 90 WE TURUN Year Cash Inflow X PV Factor Present Value 1 2 3 4 5 Inital Investment Project B S 158,980 PV Factor Year Cash Inflow Present Value 1 2 - 3 4 5 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, choose? Profitability Index Choose Numeratort Choose Denominator: Profitability Index Profitability index Project A Project B the company can only select one pro ect, which should it choose? Required A Required B

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