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					Project B
Initial investment		$	(189,325	)			$	(153,960	)
Expected net cash flows in:
Year 1			47,000					33,000
Year 2			48,000					42,000
Year 3			78,295					67,000
Year 4			93,400					81,000
Year 5			58,000					24,000

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?

Project AInitial Investment$189,325Chart Values are Based on:i =%YearCash InflowxPV Factor=Present Value1=2=3=4=5=Project BInitial Investment$153,960YearCash InflowxPV Factor=Present Value1=2=3=4=5=

Profitability IndexChoose Numerator:/Choose Denominator:=Profitability Index/=Profitability indexProject AProject BIf the company can only select one project, which should it choose?