my Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 Project B Initial investment $(160,000) $(105,000) Expected net cash flows in: Year 1 40,000 32,000 Year 2 56,000 50,000 Year 3 80,295 66,000 Year 4 90,400 72,000 Year 5 65,000 24,000 ces 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 18 160,000 = 0.52 points Initial Investment Chart Values are Based on: 10 % Year Cash Inflow 1 40,000 X 2 56,000x 80,295 X 4 90.400 5 65,000 x X PV Factor 0.9090 0.8260 = 0.7510 = 0.6830 0.6210 x x Present Value 36,360 46,256 60,302 61,743 40,365 $ 245,026 = OS 5 11 Present value of cash inflows Present value of cash outflows Net present value $ 245,026 160,000 $ 85,026 Project B Initial Investment Year X 2 Cash Inflow 32,000 50,000 66,000 72.000 24,000 X 105,000 PV Factor 0.9090 0.8260 0.7510 0.6830 0.6210 3 X OOOO Present Value 29,088 41,300 49.566 49,176 14.904 $184.034 4 11 5 x = Present value of cash inflows Present value of cash outflows Net present value SIS $ 184,034 105.000 79.034 Graw Hill choose Profitability Index Choose Choose Numerator: Denominator: Annual after-tax net income Annual average investment Project $ 245 026 $ 160,000 Project B $ 184,034 X Y S 105,000 If the company can only select one project, which should it choose? Profitability Index Profitability index = 1.5314 1.7527 Project B