Exercise 25-10 NPV and profitability Index LO P3 Following is Information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments PV of $1. FV of $1. PVA of 51 and EVA of 51). (Use appropriate factor(s) from the tables provided) Project A Project B Initial investment $(188,325) $(141,960) Expected net cash flows in year: 1 52,000 42,000 2 59,000 61,000 3 78,295 58,000 78,400 80,000 5 73,000 30,000 a. For each alternative project compute the net present value. b. For each alternative project compute the profitability Index, the company can only select one project, which should it choose? Complete this question by entering your answers in the tabs below. Required Required B For each alternative project compute the net present value. Project A Initial Investment $ 188,325 Chart Values are Based on: Year Cash Inflow PV Factor Present Value 1 2 3 4 5 Year Project B $ Initial Investment 141.960 Cash PV Inflow Factor 1 2 3 4 5 Present Value Exercise 25-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% 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 Project B Initial investment $(188,325) $(141,960) Expected net cash flows in year: 52,000 42,000 59,000 61,000 78,295 58,000 78,400 80,000 73,000 30,000 HNM 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 Required B For each alternative project compute the profitability index, if the con vany can only select one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Profitability Denominator: Index Profitability Index Project Project B if the company can only select one project, which should it choose?