Saved Exercise 24-10 NPV and profitability Index LO P3 return from Following is information on two alternative investments being considered by Jolee Company. The company requires a 6 its investments. (PVOL 51. EVO 51. PVA O S1, and EVA of $1) (Use appropriate factor(s) from the tables provided) Project A $(190,325) Project B (142,900) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 50,000 51,000 75, 205 84,400 65,000 28,000 62,000 64,000 78,000 33,000 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 B For each alternative project compute the net present value. Project A Initial Investment 3 190,325 Chant Values are based on Year Cash inflow X PV Factor Present Value Required A Required B For each alternative project compute the net present value. Project A Initial Investment 190,325 Chart Values are Based on: % Year Cash Inflow X PV Factor Present Value Initial Investment Year Cash Inflow Project B $ 142,960 X PV Factor = Present Value Initial Investment Year Cash Inflow Project B $ 142,960 X PV Factor Present Value N on Present value of cash inflows Required B > Present value of cash outflows Net present value Year 5 65,000 33,000 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 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 Project Al Project B if the company can only select one project, which should it choose?