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 $(177,325) Project B $(152,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 40,000 43,000 90,295 95,400 61,000 37,000 47,000 54,000 83,000 24,000 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. Present Value Project A Initial Investment $ 177,325 Chart Values are Based on: i = 100% Year Cash Inflow X PV Factor 1 40,000 0.9090/= 2 43,000 3 90,295 x 4 95,400 x 5 61,000 = Present value of cash inflows Present value of cash outflows Net present value Present Value Project B Initial Investment $ 152,960 Year Cash Inflow PV Factor 1 37,000 X 0.9090 = 2 47,000 x 3 54,000 4 83,000 X 5 24,000 = Present value of cash inflows Present value of cash outflows Net present value For each alternative project compute the profitability index. If the company can only select one project, which should it choose? II Profitability Index Choose Numerator: / Choose Denominator: Profitability Index Present value of net cash flows / Initial investment Profitability index Project A $ 177,325 0.00 Project B $ 152,960 0.00 If the company can only select one project, which should it choose? Project A II = Required A Required B >