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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, FV
Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 | $ | (184,325 | ) | $ | (144,960 | ) | ||||
Expected net cash flows in: | ||||||||||
Year 1 | 53,000 | 39,000 | ||||||||
Year 2 | 50,000 | 47,000 | ||||||||
Year 3 | 87,295 | 48,000 | ||||||||
Year 4 | 80,400 | 73,000 | ||||||||
Year 5 | 54,000 | 22,000 | ||||||||
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?
mon.com/indech nalowe 1-10 Help Seve Ex Subm Check my werk Folowing is information on two alternative investments being considered by Jolee Company. The company requires a 10return from its investments of SIEVAST PVA Si, and EVA 50 (Use appropriate factor(s) from the tables provided. Prec Project Initi investit 3253 5346.182 Expected cash flows in 53,000 35.000 47.000 27,9 4,000 Year 0,4 73.00 Years 54.000 22.000 Year Near Years 6. 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. Record Required For each alternative project compute the net present value Project Investment 5 Chan Malused 15425 Cath PV Factor YA 1 PROV 12 3 4 5 $ Initialem Y 144960 Py Factor 2 3 4 5 Required) Saw * 11:10 Snye & Exit Help Suomi Check my work Following is Information on two alternative investments being considered by Jolee Company. The company requires a 10%return from its investments (PV of $1. EVOSI. PVA of S1. and FVA of S1 (Use appropriate factorfe) from the tables provided.) Project $4154,335) Project $(144,900) INELA Lnvesteet Expected net cash flow in: Year 1 Year 2 Year 3 Year 4 Year 5 53,000 50,000 37,295 30,400 54,000 39,000 47,000 45,000 7,900 22,000 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 Required For each alternative project compute the profitability index. If the company can only select one project, which should it choose? Profitability Index 1. Choose Denominator: Choose Numerators Profitability Index Profitability Index Project Project B if the company can only select one project, which should it choose?
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