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Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of S1, FV

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Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of S1, FV of S1, PVA of S1 and PVA of 5) (Use appropriate factor(s) from the tables provided.) Project A $(171,325) Project B $(141,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 44.000 53,000 89,295 85,400 62,000 28,000 52,000 57,000 75,000 24,000 a. For each alternative project compute the net present value b. For each alterative 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 $ 171,325 Initial Investment Chart Values are Based on: Cash Inflow X PV Factor Present Value Year 1 2 3 4 5 Project B Initial investment $ 141,960 Year Cash PV Inflow Factor 1 Present Value 3 4 Required B

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