Inputs:

• Present value of cash inflows
• Present value of cash outflows
• Net present value
• Accounts receivable
• Annual after-tax net income
• Annual average investment
• Annual pre-tax income
• Average total assets
• Cost of goods sold
• Current assets
• Current liabilities
• Initial investment
• Net sales
• Present value of net cash flows
• Total assets

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 $(185,325) Project B $(159,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 53,000 49,000 74,295 81,400 72,000 28,000 46,000 58,000 66,000 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 185,325 Chart Values are based on: % Year Cash Inflow PV Factor Present Value 1 2 4 5 = Initial Investment Year Cash Inflow Project B $ 159,960 PV Factor Present Value 1 = N 4 5 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 1 Choose Denominator: Choose Numerator: Profitability Index Profitability index 11 Project A Project B If the company can only select one project, which should it choose?