stments. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project A $(175,325) Project B $(144,960) tial investment ected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 38,000 48,000 86,295 78,400 60,000 27,000 60,000 49,000 66,000 24,000 For each alternative project compute the net present value. For each alternative project compute the profitability index. If the company can only select one project, which should it chi * Answer is not complete. Complete this question by entering your answers in the tabs below. Required A Required B For each alternative project compute the net present value. 175,325 Present Project A Initial Investment Chart Values are based on: 10 % Cash Year x 38.000 48.000X 86 295 78.400 60.000 Pop- Present value of cash inflows Present value of cash outlows Not prosent value 000 Saved Exercise 11-5 Payback period computation; even cash flows LO P1 Compute the payback period for each of these two separate investments: a. A new operating system for an existing machine is expected to cost $260,000 and have a useful life of five years. The system yields an incremental after-tax income of $75,000 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $10,000. b. A machine costs $200,000, has a $14,000 salvage value is expected to last nine years, and will generate an after-tax income of $41000 per year after straight-line depreciation - Payback Period Choose Denominator: Annual net cash flow $ 137.500 s 64 250 Choose Numerator: Cost of investment $ 260,000 200.000 Payback Period Payback period