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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

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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 of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project A $(189, 325) Project B $(156,968) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 5e, Bee 45, cea 73,295 95,400 71, cea 25,000 54,00 62,888 70,000 28,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 net present value. Project A Initial Investment 189,325 Chart Values are Based on: i = % Year Cash Inflow PV Factor Present Value 1 2 3 4 5 Project B s 158,960 Initial Investment Year Cash Inflow X PV Factor Present Value 1 = 2 = 3 = 4 5 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 $(189,325) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 5e,eee 45,800 73, 295 95,400 71,eee Project B $(156,960) 25,000 54,90 62,000 79,00 28,888 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? Profitability Index Choose Numerator: Choose Denominator: = Profitability Index Profitability index 1 Project A Project B If the company can only select one project, which should it choose?

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