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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. EV

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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. EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(174,325) Project B $(159,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year Year 5 $1,000 52,000 73,295 90,400 70,000 31,000 44,000 53,000 84,000 36,000 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 net present value. Project A Initial Investment $ 174,325 Chart Values are Based on: Year Cash Inflow X PV Factor Present Value Project A Initial Investment $ 174,325 Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value Initial Investment Year Cash Inflow Project B $ 159,960 X PV Factor = Present Value 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? 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: Choose Numerator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose

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