Question
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
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.) Project A Project BInitial investment $ (171,325 ) $ (154,960 ) Expected net cash flows in year: 1 42,000 28,000 2 41,000 57,000 3 73,295 54,000 4 87,400 72,000 5 60,000 21,000 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?thank you?
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