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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

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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 $(189,325) Project B $(145,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 44,000 42,000 88,295 93,480 70,000 27,000 48,000 52,000 81, eee 30,000 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 $ 189,325 Chart Values are Based on: i = 81% Year Cash Inflow PV Factor Present Value 1 44,000 x 0.92595 = 2 3 4 5 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 $(189,325) Project B $(145,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 44,000 42,000 88, 295 93,400 70,000 27,000 48,000 52,000 81,000 30,000 Year 4 Year 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 Numerator: Choose Denominator: Profitability Index / = Profitability index 0 Project A Project B If the company can only select one project, which should it choose? 0

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