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, andFVA of $1)(Use appropriate factor(s) from the tables provided.)

Project AProject BInitial investment$(178,325)$(140,960)Expected net cash flows in:Year 137,00027,000Year 256,00053,000Year 380,29556,000Year 493,40069,000Year 566,00023,000

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?