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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

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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 $(182,325) Project B $ (141,960) points Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 50.000 59,000 81,295 95.400 56.000 42,000 46.000 65.000 69,000 24,000 eBook 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? Hint Complete this question by entering your answers in the tabs below. Print Required A Required B For each alternative project compute the net present value. Project A Initial Investment s 182,325 Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value s Initial Investment Year Cash Inflow Project B 141,960 PV Factor X = Present Value Required A Required B >

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