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Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. PV of S1, FV
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. PV of S1, FV of St. PVA of S1 and FVA of $1 (Use appropriate factors) from the tables provided.) Project A $(177,325) Project B $(150,960) Initial investment Expected net cash flows in year: 51, 44,000 80,295 94,400 64.ee 30,000 59,000 58,000 82,000 37.ee 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 choose? Complete this question by entering your answers in the tabs below. Required Required For each alternative project compute the net present value. Project A Initial Investment 177 325 Chart Values are Based on: Year Cash Inflow PV F actor Present Value CAN- Project B Initial Investment 150 960 Cash PV Year Inflow Factor Present Value Complete this question by entering your answers in the tabs below. Required Required For each alternative project compute the profitability index, if the company can only select one project, which should it choose? Profitability Index Choose Numerator . Choose Profitability Denominator: Index Profitability index Project Project if the company can only select one project, which should it choose
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