Rowan Company is considering two alternative investment projects. Each requires a $259,000 initial investment. Project A is expected to generate net cash flows of $69,000 per year over the next six years. Project B is expected to generate net cash flows of $59,000 per year over the next seven years. Management requires an 9% rate of return on its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Compute each projects net present value.
2. Compute each projects profitability index.
3. If the company can choose only one project, which should it choose, based on profitability index?

Required: 1. Compute each project's net peesent value: 2. Compuse each project's profitability index. 3. If the company can choose only one project. which should it choose, based on protitability index? Complete this question by entering your answers in the tabs below. Compute each project's net present vasue. Do not round intermediate calculations, Round your present vasue factor to 4 decimals and your final answers to the nearest whole dollari) Aequired: 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. Compute each project's profitability index, (0o not round intermediote vatuet. Enter your answers rounded to the nearest whole dotiar.) Aequired: 1. Compute each project's net peesent value. 2. Compute esch project's peofitability index, 3. If the company can choose only one project, which should it choose, based on profitabiity index? Complete this question by entering your answers in the tabs below. If the comoany can choose anly ane project, which should if choose, based on profitabil fy index? It the company can choose orly one prowect, which should a choose, based on profebily index