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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. EV

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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. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project Project B Initial investment $(160,000) $(105,000) Expected net cash flows in year 40,000 32,000 56,000 50,000 80,295 66,000 90,400 72,000 65,000 24,000 1 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? 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: Year Gash Inflow PV Factor Present Value 1 2 3 4 5 Initial Investment Project B $ 105.000 Cash PV Inflow Factor Year Present Value 1 2 3 4 5 Required 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: y Choose Denominator Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose? Required A

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