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Following is Information on two alternative Investments being considered by Jolee Company. The company requires a 6% return from Its Investments. (PV of $1, FV

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Following is Information on two alternative Investments being considered by Jolee Company. The company requires a 6% return from Its Investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.) Project A $(184,325) Project B $(151,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,080 54,888 82, 295 93,480 68,000 26,800 61,000 54, eee 84, eee 23,00 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? Project A Initial Investment $ 184,325 Chart Values are Based on: % Year Cash Inflow PV Factor Present Value 1 2 = 3 4 5 Initial Investment Project B s 151.960 PV Factor Year Cash Inflow Present Value 1 2 = UN 3 = 4 5 For each alternative project compute the profitability index. If the company can only sele choose? = Profitability Index Profitability index Profitability Index Choose Numerator: | Choose Denominator: 1 Project A Project B If the company can only select one project, which should it choose

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