Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1, EV of $1, PVA of $1 and FVA of $1). (Use appropriate factor(s) from the tables provided.) Project B $ (160,960) Project A $ (174,325) Initial investment Expected net cash flows in year: 1 54,000 39,000 48,000 49,000 73,000 26,000 2 59,000 81,295 91,400 54,000 3 - 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? Project A Initial Investment $ 174,325 Chart Values are Based on: Cash Inflow Year PV Factor Present Value 1 2 3 4 = 5 Project B $ Initial Investment 160,960 Year Cash Inflow PV Factor Present Value 1 2 3 4 5 Profitability Index Choose Numerator: Choose Denominator: Profitability Index Profitability index / Project A Project B If the company can only select one project, which should it choose? Required A Required B