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Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (FV of $1. PV
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (FV of $1. PV of $1, FVA of $1 and PVA of $1). (Use appropriate factor(s) from the tables provided.) Project A Project B S(180,325) (159,960) Initial investment Expected net cash flows in year: 50,000 41,000 76,295 80,400 58,000 41,000 58,000 56,000 71,000 21,000 4 1(a) For each alternative project compute the net present value Project A Initial Investment 180,325 Chart Values are Based on: YearCash Inflow x PV factor 1= Present Value 4 Project B Initial Investment 159,960 Year Cash Inflow x PV factor Present Value 4
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