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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 $1. 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 $1. FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(187,325) Project B $(143,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 39,000 47,000 79,295 87,400 71,00 29, eee 47,000 53, ees 70,000 30,000 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. Project A Initial Investment $ 187,325 Chart Values are Based on: % Year Cash Inflow X PV Factor Present Value Project A Initial Investment 187,325 Chart Values are Based on: / % Year Cash Inflow PV Factor Present Value 1 2 3 4 5 Project B $ 143,960 X PV Factor Present Value Initial Investment Year Cash Inflow 1 2 3 4 1 un = Initial Investment Year Cash Inflow Project B $ 143,960 PV Factor E Present Value 1 11 2 11 2 3 II 4 = 5 Il For each alternative project compute the profitability index. If the company can only select one project, which should it Schoose? Profitability Index Choose Numerator: 1 Choose Denominator: - Profitability Index Profitability index Project A 0 Project B 0 If the company can only select one project, which should it choose

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