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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 S1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project A $(179,325) Project B 5(160,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 53,000 49,000 76,295 77,400 62,000 39,000 58,000 53,000 77.000 21,000 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 Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 179,325 Chart Values are Based on: 1 = % Year Cash Inflow PV Factor 1 Present Value 3 4 5 Initial Investment Year Cash Inflow Project B $ 160.960 PV Factor Present Value 1 2 3 4 5 Required B > 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 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? Choose Numerator Profitability Index Choose Denominator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose? Required A

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