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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 $1. PVA of $1, and FVA of S1 (Use appropriate factor(s) from the tables provided.) Project A Projects Initial investment 5(183,325) $(150,960) Expected net cash flows in: 54,000 27, Year 2 42,000 43,000 Year 3 74,295 60,00 Year 4 80,400 72,000 Year 5 72,000 22,000 Year 1 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 5 183 325 BE Required A Required B For each alternative project compute the net present value. Project Initial Investment $ 183,325 Chatt Values are based on: % Cash Inflow PV Factor 1 Year Present Value 2 3 4 5 Proiect Initial Investment Year Cash Inilow Project B $ 150,960 x PV Factor Present Value 1 2 3 IIIIIII 4 5 Required Required B > 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 choose2 Profitability Index Choose Numerator: Choose Denominator: 1 Project A Project B If the company can only select one project which should it choose? Profitability Index Profitability index

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