Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (PV of $1. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project $(160.000) Project $(105,000) Initial investment Expected net cash flows in year 1 2 40,000 56,000 80.295 90,400 65,000 32,000 50,000 66,000 72,000 24,000 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? Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 160,000 Chart Values are based on: Present Value Year Cash Intlow x PV Factor 1 40,000 2 56.000 3 80.295 x 4 90,400 x Initial Investment $ 160,000 Chart Values are Based on: Present Value 1111 Year Cash Inflow X PV Factor = 1 40,000 2 56,000 X 3 80,295 x 4 90,400 X 65,000 x 3 11 11 11 Present value of cash inflows Present Value = Project B Initial Investment $ 105,000 Year Cash Inflow X PV Factor = 1 32,000 x 2 50,000 3 66,000 X 4 72,000 5 24,000 11 3 1111 Expected net cash flows in year: 1 2 3 4 5 40,000 56,000 80,295 90,400 65,000 32,000 50,000 66,000 72,000 24,000 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 Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the profitability index. If the company can only select one p .choose? Profitability Index Choose Numerator: 1 Choose Denomtnator: Present value of net cash flows 1 Initial investment Project A Project B of the company can only select one project, which should it choose? Profitability Index = Profitability index 0 0