Following is information on two alternative investments being considered by Jayjay Company Inc.

The company requires a 10% return from its investments. (PV of $1,FV of $1,PVA of $1andFVA of $1).(Use appropriate factor(s) from the tables provided.)

Project A Project B

Initial investment $(189,325) $(148,960)

Expected net cash flows in year:Y1:37,000 33,000

Y2:56,000 55,000

Y3:76,295 63,000

Y4:87,400 78,000

Y5:71,000 36,000

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?

Required 11 Required B For each altemative project compute the net present value. For each altemative project compute the prolability index, if the company can only select one project, which should it choose? Project A Project B If the company can only select one project, which should it choose?