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.)
| | Project A | Project B |
| Initial investment | | $ | (178,325 | ) | | | $ | (153,960 | ) | |
| Expected net cash flows in: | | | | | | | | | | |
| Year 1 | | | 53,000 | | | | | 45,000 | | |
| Year 2 | | | 56,000 | | | | | 45,000 | | |
| Year 3 | | | 72,295 | | | | | 48,000 | | |
| Year 4 | | | 81,400 | | | | | 77,000 | | |
| Year 5 | | | 65,000 | | | | | 31,000 | | |
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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, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) 20 points Project A $(178,325) Project B $(153,960) Skipped Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 53,000 56,000 72,295 81,400 65,000 45,000 45,000 48,000 77,000 31,000 eBook 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? Hint Complete this question by entering your answers in the tabs below. Ask Required A Required B References For each alternative project compute the net present value. 178,325 Project A Initial Investment $ Chart Values are Based on: % Year Cash Inflow X PV Factor = Present Value 1 1 2 = 3 4 5 Project B $ 153,960 Initial Investment Present Year Cash Inflow X PV Factor = Value 1 2 3 4 = 5 = Mc Graw Hill Prev 1 of 1 Next Project B $ Initial Investment 153,960 Year Cash Inflow x PV Factor = Present Value 1 2 3 4 = 5 Mc Graw Hill Prev 1 of 1 Next 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.) 20 points Project A $(178,325) Project B $(153,960) Skipped Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 53,000 56,000 72,295 81,400 65,000 45,000 45,000 48,000 77,000 31,000 eBook Hint 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? Ask Complete this question by entering your answers in the tabs below. References 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 Denominator: Choose Numerator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose
