Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1). (Use the exact factors from the tables provided. Do not round the table factors. Round your final answers to a whole dollar.)

	Project A					Project B
Initial investment		$	(181,325	)			$	(154,960	)
Expected net cash flows in year:
1			39,000					29,000
2			43,000					49,000
3			80,295					53,000
4			78,400					80,000
5			61,000					30,000

1(a)	For each alternative project compute the net present value.

1(b)	For each alternative project compute the profitability index.

2.	Assume If the company can only select one project, which should it choose?
	Project B Project A