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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 $(173,325) Project B $(150,960) Initial investment Expected net cash flows in year: 1 WNP 3 54,000 50,000 85,295 78,400 57,000 29,000 47,000 56,000 67,000 25,000 5 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 Required B For each alternative project compute the net present value. Project A $ Initial Investment 173,325 Chart Values are Based on: i=1 Year Cash PV Inflow Factor 1 2 3 4 5 Present Value Present Value Project B $ Initial Investment 150,960 Cash PV Year Inflow Factor 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 $(173,325) Project B $(150,960) Initial investment Expected net cash flows in year: 1 2 3 4 5 54,000 50,000 85,295 78,400 57,000 29,000 47,000 56,000 67,000 25,000 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 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 Choose Numerator: / Denominator: = Profitability Index Profitability index 1 = 0 0 Project A Project B If the company can only select one project, which should it choose?

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