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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

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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.) Project A $(184,325) Project B $(153,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 47,000 56,000 80,295 79,400 71,000 42,000 55,000 57,000 65,000 29,000 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. 184,325 Project A Initial Investment $ Chart Values are Based on: % Year Cash Intiow x PV Factor = Present Value 1 2 3 4 5

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