Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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.) 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?

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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) $ (144,960) Expected net cash flows in year: 37,000 38,000 57,000 61.000 75,295 65,000 82,400 68,000 5 66,000 31,000 2 3 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. 178,325 Project A Initial Investment $ Chart Values are Based on: : i = Year Cash Inflow PV Factor - 1 2 Present Value 3 4 5 Initial Investment Year Cash Inflow 1 1 Project B S 144.960 * PV Factor = Present Value 2 = 3 = 4 5 Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 $ (178,325) Project B $(144,960) Initial investment Expected net cash flows in year: 1 2 3 4 5 37,000 57,000 75,295 82,400 66,000 38,000 61,000 65,000 68,000 31,000 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 profitability index, if the company can only select one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Denominator: Profitability Index Profitability index 1 = 0 Project A Project B If the company can only select one project, which should it choose? 0