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		$	(190,325	)			$	(156,960	)
Expected net cash flows in year:
1			37,000					30,000
2			42,000					47,000
3			80,295					52,000
4			79,400					72,000
5			55,000					21,000

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?