Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% 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$(175,325)$(154,960)Expected net cash flows in:Year 135,00043,000Year 250,00051,000Year 391,29563,000Year 478,40066,000Year 554,00024,000

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?

\fFor each alternative project compute the profitability index. If the company can only select one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Denominator: = Profitability Index Profitability index Project A 0 Project B If the company can only select one project, which should it choose?For each alternative project compute the net present value. Project A Initial Investment $ 175,325 Chart Values are Based on: i= % Year Cash Inflow x PV Factor = Present Value 2\fProject A Project B Initial investment $ ( 175, 325) $ ( 154, 960) Expected net cash flows in: Year 1 35,000 43,000 Year 2 50,000 51,000 Year 3 91, 295 63,000 Year 4 78, 400 66,000 Year 5 54,000 24,000