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Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 10% 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 $ (176,325) Project B $ (158,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 42,000 41,000 75,295 89,400 70,000 30,000 49,000 65,000 75,000 31,000 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? Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 176,325 Chart Values are Based on: i = % Cash Inflow X PV Factor Year Present Value 1 2 3 4 5 Initial Investment Year Cash Inflow Project B $ 158,960 PV Factor Present Value 1 2 3 4 5 Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 $ (176,325) Project B $ (158,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 42,000 41,000 75,295 89,400 70,000 30,000 49,000 65,000 75,000 31,000 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 profitability index. If the company can only select one project, which should it choose? Profitability Index Choose Denominator: Choose Numerator: = Profitability Index Profitability index / Project A Project B If the company can only select one project, which should it choose?

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