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.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(186,325) Project B $(142,960) 43,000 39,000 58,000 44,000 92,295 52,000 92,400 66,000 73,000 35,000 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? For each alternative project compute the net present value. Initial Investment Project A $ 186,325 Chart Values are Based on: i = % Year Cash Inflow PV Factor = Present Value 1 2 = 3 4 5 = = II Initial Investment $ Project B 142,960 Year Cash Inflow x PV Factor = Present Value 1 23 3 4 5 = = = = Required A Required B For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Project A Project B Profitability Index Choose Numerator: Choose Denominator: = Profitability Index = Profitability index If the company can only select one project, which should it choose? < Required A Required B >