Information about the two projects are under consideration follows:

Project 1Project 2

Present value of future net cash flows........... $344,000$578,500

Initial investment....................................................215,000445,000

Required:

A. Compute the following amounts:

Net present value of Project 1[ Answer format: amount, no commas, no decimals, no dollar sign]

Answer:$Answer

Net present value of Project 2[ Answer format: amount, no commas, no decimals, no dollar sign]

Answer:$Answer

Profitability index of Project 1[ Answer format: amount, no commas,1 decimal, no dollar sign]

Answer:Answer

Profitability index of Project 2[ Answer format: amount, no commas,1 decimal, no dollar sign]

Answer:Answer

B. Assuming the company has only enough money to invest in one of the projects, which project should the company invest in?

Answer:Answer

Project 1

Project 2

(Select 1)