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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 $11 (Use approprlate factor(s) from the tables provided.) Project A $(178,325) Project B $(146,968) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,eee 55, eee 81, 295 89,400 58,eee 39,90 53,80 48,eee 79,699 27,690 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 $ 178.325 Chart Values are Based on: % Year Cash Inflow PV Factor Present Value 1 = 2 3 4 5 Initial Investment Year Cash Inflow Project B $ 148.000 PV Factor Present Value = 1 2 = 3 4 5 Required A Required B > 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 $(178,325) Project B $(146,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,200 55,800 81, 295 89, 480 58, cea 30,eee 53,80 48,888 78,000 27,eee 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 profitability index. If the company can only select one project, which should it choose? Choose Numerator: Profitability Index 1 Choose Denominator: 1 = Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose?
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