Project A Initial Investment 188,325 Chart Values are Based on: 10% YearCash Inflow xPV Factor E Present Value 0.9090 0.8260 0.7510 0.6830- 0.6210 36,000x 48,000 x 81,295 X 83,400 x 73,000X 32,724 39,648 61,053 56,962 45,333 235,720 2 4 resent value of cash inflows resent value of cash outflows et present value 235,720 188,325 47,395 Project B Initial Investment 141,960 YearCash Inflow xPV Factor E Present Value 0.9090 0.8260 075101= 0.6830- 0.6210 35,000 x 56,000 x 50,000x 84,000x 33,000x 31,815 46,256 37,550 57,372 20,493 193,486 2 4 resent value of cash inflows resent value of cash outflows et present value 193,486 141,960 51,526 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 Numerator: Choose Denominator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose? roject B