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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. (FV of $1, PV
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments. (FV of $1, PV of $1 FVA of $1 and PVA of 1). (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $(189,325) (150,960) Expected net cash flows in year. 41,000 37,000 54,000 59,000 90,295 54.000 90,400 72,000 37,000 55.000 1(a) For each alternative project compute the net present value. Project A 189,325 Initial Investment hart Values are Based on: 10% Year Cash inflow IX PV factor Present Value 41,000 54,000 90,295 x 90,400 x 55,000 x Project B Initial Investment 150,960 PV factor Present Value Year Cash Inflow X
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