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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 $(190, 325) Project B $(154,968) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,200 45, eee 76,295 79,40e 67, ese 34, ee 42,000 55, eee 69,800 22,000 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 S 190,325 Chart Values are Based on: i = % Year Cash Inflow X PV Factor = Present Value 1 1 = = 2 3 = 4 5 Project B S S 154.980 X

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