Rowan Company is considering two alternative investment projects. Each requires a $268,000 initial investment. Project A is expected to generate net cash flows of 500 per year over the next six years. Project B is expected to generate net cash flows of $68,000 per year over the next seven years. Management requires an 10\% rate of return on its investments. (PV of \$1. EV of \$1. PVA of \$1, and EVA of \$1) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's net preson value. 2. Compute each project's profitability index. 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. Compute each project's net present value. (Do not round intermediate calculations, Round your present value factor to 4 decimals and your final answers to the nearest whole dollar.) Rowan Company is considering two alternative investment projects. Each requires a $268,000 initial investment. Project A is expected to generate net cash flows of $78,000 per year over the next six year5. Project B is expected to generate net cash flows of $68,000 per year over the next 5 ... i years. Management requires an 10% rate of return on its investments. (PV of $1,EV of $1,PVA of $1, and EVA of 51) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's net oresent value. 2. Compute each project's proitability index. 3. If the company can choose only one project, which should it choose, bosed on profitability index? Complete this question by entering your answers in the tabs below. Compute each project's profitablity index. (Do not round intermedlate values. Enter your answers rounded to the nearest whole) dollar.) Rowan Company is considering two alternative investment projects. Each requires a $268,000 initial investment. Project A is expected to generate net cash flows of $78,000 per year over the next six years. Project B is expected to generate net cash flows of $68,000 per year over the next seven years. Management requires an 10% rate of return on its investments. (PV of $1. FV of $1. PVA of $1, and FVA of S11) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute each project's net present value. 2. Compute each project's profitability index. 3. If the company can choose only one project, which should it choose, based on profitability index? Complete this question by entering your answers in the tabs below. If the company can choose only one project, which should it choose, based on profitabillty index
