Following is Information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1. FV of 51. PVA of S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project A $(181,325) Initial investment Expected net cash flows in Year 1 Year 2 Year Year 4 Years 48,00 50.000 18,295 83,400 73,000 Project 5(156,960) 33,000 49.000 54,000 74.000 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? Answer is not complete. 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 181 325 Chart Values are Based on 8 Year PV Factor 0.9259 Present Value 44 445 X Cash Inflow 48.000 50.000 88.295 83.400 1 2 3 4 X X X = 8 Project A 181,325 Initial Investment Chart Values are Based on: > % 0.45 Doints Year PV Factor 0.9259 Present Value 44 445 1 X 2 X Cash Inflow 48,000 50.000 88 295 83,400 73.000 003 3 x 4 X 5 X > Present value of cash inflows Present value of cash outflows Net present value Project B Initial Investment 156,960 PV Factor Year Present Value 1 2 Cash Inflow 33,000 49,000 64,000 74,000 28,000 3 X 4 5 X Present value of cash inflows Present value of cash outflows Net present value M (Mc Required A Required E For each alternative project compute the profitability index. If the company can only select one projec choose? Profitability Index Profitability index Profitability Index Choose Numerator: 1 Choose Denominator: Present value of net cash Initial investment flows Project Project B If the company can only select one project, which should it choose? 0 0