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 $(176,325) Project B $(151,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 39,000 49,000 82,295 76,400 68,000 28,000 42,000 52,000 77,000 30,000 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 $ Chart Values are Based on: 176,325 8% Year Cash Inflow X PV Factor = Present Value 1 39,000 x 49,000 x 2 3 82,295 x 4 76,400 x 5 68,000 x Present value of cash inflows Present value of cash outflows Net present value Project B $ 151,960 Initial Investment Year Cash Inflow X PV Factor = Present Value 1 28,000 x 5.0000/= 2 42,000 x 3 4 52,000 x 77,000 x 30,000 x 5 Present value of cash inflows Present value of cash outflows Net present value Required A Required B For each alternative project compute the profitability index. If the company can only select one project, which should it choose? II = Profitability Index Choose Numerator: Choose Denominator: Profitability Index Present value of net cash flows Initial investment Profitability index Project A $ 176,325 0.00 Project B $ 151,960 0.00 If the company can only select one project, which should it choose? Project A =