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Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 6% return from its investments (PV of $1. FV of $1. PVA ot$1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project Project B Initial investment 5(171,325) $(145,960) Expected net cash flows in: Year 1 39,000 35,000 Year 2 48,000 59,000 Year 3 76,295 55,000 Year 4 90,400 B1,000 Year 5 62,000 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? Complete this question by entering your answers in the tabs below. Required A Required For each alternative project compute the net present value. Project A In investment s 171 325 Chart Values are based on * Ya Cash Inflow X PV Factor Present Value 1 2 3 4 5 Inwestment Project $ 145 900 PV Facto 1 2 14 Required A Required B For each alternative project compute the profitability index. If the company can only select one choose? Profitability Index Profitability index 11 Profitability Index Choose Numerator: Choose Denominator: 1 Project A Project B If the company can only select one project, which should it choose?

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