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Following is information on two alternative Investments being considered by Jolee Company. The company requires a 12% retur its investments. (PV of $1. EV of
Following is information on two alternative Investments being considered by Jolee Company. The company requires a 12% retur its investments. (PV of $1. EV of $1. PVA of $1, and EVA 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 $(181,325) Project B $(160,960) 54,000 28,000 43,000 47,000 85,295 57,000. 76,400 73,000 55,000 29,000 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. Initial Investment Chart Values are Based on: Project A S 181,325 % Year Cash Inflow x PV Factor Present Value 1 M 2 3 4 5 Following is information on two alternative Investments being considered by Jolee Company. The company requires a 12% return from its Investments. (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 31 Year 41 Year 5 Project A $(181,325) Project B $(160,960) 54,000 28,000 43,000 47,000 85,295 57,000 76,400 73,000 55,000 29,000 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? Project A Project B Profitability Index Choose Numerator: Choose Denominator Profitability Index 7 Profitability index If the company can only select one project, which should it choose? 0
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