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					Project B
Initial investment		$	(160,000	)			$	(105,000	)
Expected net cash flows in year:
1			40,000					32,000
2			56,000					50,000
3			80,295					66,000
4			90,400					72,000
5			65,000					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?

Required A Required B For each alternative project compute the net present Project A Initial Investment $ 160.000 Chart Values are Based on Year Cash Inflow X PV Factor = Present Value Project B Initial Investment $ 105,000 Year Cash Inflow X PV Factor = Present Value 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 Numerator. 1 Choose Denominator: = Profitability Index 1 = Profitability index Project A Project B If the company can only select one project, which should it choose?