Transcribed image text: 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 8% 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 $ (190,325) Project B $(151,960) Initial investment Expected net cash flows in year: 1 2 3 4 5 UAWN 37,000 59,000 72,295 91,400 66,000 28,000 43,000 65,000 78,000 26,000 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? Required A Required B For each alternative project compute the net present value. Project A Initial Investment 190,325 Chart Values are Based on: i = Year Cash Inflow PV Factor Present Value 1 2 = 3 4 5 Project B 151,960 Initial Investment Year Cash Inflow PV Factor Present Value 1 2 Project B 151,960 Initial Investment Year Cash Inflow PV Factor Present Value 1 2 3 4 5 II