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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 B Project A $(160,000) $(105,000) Initial investment Expected net cash flows in year: 1 2 3 40,000 56,000 80,295 90,400 65,000 32,000 50,000 66,000 72,000 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 B For each alternative project compute the net present value. . Project A Initial Investment $ 160,000 Chart Values are Based on: 10% Year Cash Inflow X PV Factor = Present Value 1 40.000 0.9090 = 2 56,000 X 0.8264 = 3 80.295 x 0.7513 60,326 4 90.400 x 0.6830 0.6830 61,743 5 65.000 0.6209 40,359 $ 162,428 $ 162,428 160,000 Project B Initial Investment $ 105,000 Year Cash Inflow X 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 B $(105,000) Initial investment Expected net cash flows in year: Project A $(160,000) 40,000 56,000 80,29 90,400 65,000 32,000 50,000 66,000 72,000 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 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: | Choose Denominator: - Profitability Index Profitability index Project A 0 Project B If the company can only select one project, which should it choose? 0

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