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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. (PV.0f $1. FV of

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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. (PV.0f $1. FV of $1. PVA.0f $1. and FVA 051) (Use appropriate factor(s) from the tables provided.) Project Projeto Initial Investment 57171,325) 5(157,960) Expected net cash flows int Year 1 36,000 39,000 50,000 43,000 77,295 66,000 89,400 75,000 Year 5 73,000 25,000 Year 2 Year 3 Year 4 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 Project A Initial Investment 171,325 Chart Values are Based on 12% Year Cash Intlow PV Factor Present Value 1 35,000 2 50,000 3 77,295 4 89.400 5 73,000 171,325 PV Factor Present Value Initial Investment $ Chart Values are Based on: 1 = 12% Yoar Cash Inflow X 36,000 2 50,000 X 3 77,295 x 4 89,400 73,000 11 = 2. 3 11 11 on 11 Present value of cash inflows Present value of cash outflows Net present value Present Value 1 = es Project B Initial Investment 157,960 Year Cash Inflow x PV Factor 1 39,000 x 2 43,000 3 66,000 4 75,000 X 5 25,000 X 2 11 ch Present value of cash inflows Present value of cash outflows Net present value Following is Information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its Investments. (PV of $1. FV of $1. PVA O $1. and EVA of $) (Use appropriate factor(s) from the tables provided.) Project Project Initial investment $(171,325) $(157,960) Expected net cash flows in Year 1 36,000 39,000 Year 2 50,000 43,000 Year 3 77,295 66,000 Year 4 89,400 75,000 Year 5 73,000 25,000 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 profitability Index. If the company can only select one project, which should It choose? Profitability Index Chooso Numerator Choose Denominator Profitability Index Profitability index Project Project If the company can only select one project, which should it choose? Project A 0 0

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