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					Project B
Initial investment		$	(181,325	)			$	(159,960	)
Expected net cash flows in year:
1			48,000					35,000
2			44,000					47,000
3			85,295					63,000
4			93,400					84,000
5			73,000					28,000

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?

Can someone help me figure it out why I have those answers incorrect please?

Project A Initial Investment 181,325 Chart Values are Based on: 8% Cash Inflow PV Factor 0.9260 Present Value Year 44,448 37,721 67,707 68,649 49,684 $ 268,209 48,000 x 4,000x0.8573 85,295x 93,400 x 73,000 2 0.7938 4 0.7350 0.6806 $ 268,209 181,325 $ 86,884 Present value of cash inflows Present value of cash outflows Net present value Project B Initial Investment 159,960 Cash Inflow PV Present Value Year Factor 0.9260 0.8573- 0.7938 - 0.7350- 0.6806 - 35,000 x 47,000x 63,000 x 84,000x 28,000x 32,410 40,293 50,009 61,740 19,057 $ 203,509 2 4 $ 203,509 159,960 43,549 Present value of cash inflows Present value of cash outflows Net present value Required A Required B 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 Denominator: Profitability Index Profitability index Choose Numerator: Present value of net cash flows /Initial investment Project Project If the company can only select one project, which should it choose? 268,209 X$ 181.325 1.48 203,509 X$ 159.960 1.27 Project A K Required A Required B