Pv of $1

Fv of $1

Pva of $1

Fva of $1

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 $(173,325) Project B $(152,960) Initibl investment Expected net cash flows in year: 1 2 3 4 5 39, eee 43, eee 86,295 77,400 65,000 29, eee 48,000 61,888 70, eee 34,800 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? For each alternative project compute the net present value. Project A $ 173,325 Initial Investment Chart Values are Based on: i= = Year Cash Inflow PV Factor Present Value 1 1111 N 3 = 4 = 5 = Initial Investment Project B $ 152,960 PV Factor Year Cash Inflow 11 Present Value 1 N = = = 3 II 4 JI 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 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