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 B Initial investment $ (173,325 ) $ (147,960 ) Expected net cash flows in: Year 1 40,000 32,000 Year 2 48,000 47,000 Year 3 80,295 52,000 Year 4 87,400 79,000 Year 5 59,000 25,000

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 A Required B For each alternative project compute the net present value- Initial Investment :5 173,325 . Project B Initial Investment $ 147,960 Year Cash Inflow X PV Factor = Present Value = 2 3 4Required B For each alternative project compute. the protability index. If the company can only select one project, which should it choose? ' If the company can only select one project, which should it choose? ( Required A