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Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% 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 12% 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 Initial investment Project B Expected net cash flows in: $(177,325) $(153,960) Year 1 42,000 44,000 Year 2 42,000 61,800 Year 3 75,295 57,000 Year 4 86,400 83,000 Year 5 61,000 33,000 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 $ 177,325 Chart Values are Based on: % Present Year Cash Inflow X PV Factor Value -42.000 2 42,000 3 75,295 86.400 5 61,000 1 4 Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 177,325 Chart Values are Based on: i = % Year Cash Inflow X PV Factor = Present Value 1 2 -42,000 42,000 75,295 x 86,400 x 61,000 X HII 3 4 5 Project B $ Initial Investment 153,960 Year Cash Inflow X PV Factor - Present Value 1 2 3 44,000 X 61.000 x 57.000 x 83,000 33,000 x I 4 5 Following is information on two alternative investments peing considered by Jolee company. Ine company requires a 12% 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.) Initial investment Project A Project B Expected net cash flows in: $(177,325) $(153,960) Year 1 42,000 44,000 Year 2 42,000 61,000 Year 3 75,295 57,000 Yeart 4 86,400 83,000 Year 5 61,000 33,000 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 profitability Index. If the company can only select one project, which should it choose? Profitability Index Choose Numerator: Choose Denominator: 1 Project A Project B If the company can only select one project, which should it choose? Profitability Index Profitability Index 0 0

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