Following is Information on two alternative Investments being considered by Jolee Company. The company requires a 8% 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 $(174,325) Project B $(156,960) Initial investment Expected net cash flows in year: 1 2 3 4 UWN 42,000 47,600 73,295 86,400 70,000 35,000 57,000 56,000 77,000 22,000 5 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. 174.325 Project A Initial Investment s Chart Values are Based on: 8% Cash Year X Inflow 1 42,000x 2 47,000 X 3 73.295 x 4 86,400X 5 70,000x PV Factor 0.9259 0.8573 = 0.7938= 0.7350 = 0.8805 = Present Value 38,888 40,293 58,182 83,504 47,635 248,502 $ s Present value of cash inflows Present value of cash outflows Net present value Oo 248,502 174,325 74,177 x $ Initial Investment Year X 1 Project B S Cash Inflow 35,000 X 57.000 56,000 X 77,000 X 22.000 x 2 156.980 PV Factor 0.9259 0.8573 0.7938 0.7350 0.6805 = 3 Present Value 32,407 48,866 44,453 58,595 14,971 $ 197,292 = 4 1111 5 $ Present value of cash inflows Present value of cash outflows Net present value solo 197,292 156,960 40,332 s Answer is complete but not entirely correct. 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 Choose Numerator: Profitability Denominator: Index Present value of net cash flows Profitability Initial investment index Project . IS $ 248,502 X 174,325 = 1.43 Project s $ 197,292 B 158,980 = 1.26 If the company can only select one project, which should it choose? Project A