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.)

Initial investment		$	(160,000	)			$	(105,000	)
Expected net cash flows in:
Year 1			40,000					32,000
Year 2			56,000					50,000
Year 3			80,295					66,000
Year 4			90,400					72,000
Year 5			65,000					24,000

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		$160,000
Chart Values are Based on:
i =not attempted	10selected answer correct	%
Year	Cash Inflow	x	PV Factor	=	Present Value
1		x		=
2		x		=
3		x		=
4		x		=
5		x		=
not attempted
not attempted
not attempted
Project B
Initial Investment		$105,000
Year	Cash Inflow	x	PV Factor	=	Present Value
1		x		=
2		x		=
3		x		=
4		x		=
5		x		=