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Help Part A and B please Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from
Help Part A and B please
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% 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 $(146.960) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Year 4 YOKE 5 38,000 40,000 90,295 84,400 58,000 27,000 53,000 67,000 69,000 25,000 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: % Year Cash Inflow X PV Factor 1 2 3 4 Present Value 5 Project A Initial Investment $ 189,325 Chart Values are Based on: i = % Year Cash Inflow X PV Factor Present Value 1 N IIII 3 4 5 Initial Investment Year Cash Inflow Project B $ 146,960 PV Factor Present Value 2 = 3 4 5 a. Po art ative 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 Denominator: Choose Numerator: Profitability Index Profitability index 0 Project A Project B If the company can only select one project, which should it choose? 0 Step by Step Solution
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