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Exercise 11-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments, PV of S1, FV of S1. PVA of S), and EVA of SD (Use appropriate factor(s) from the tables provided) Project Projects Initial investment 5(109,325) ${153,960) Tepeeted net cash flows in Year 1 51,000 28,000 5).000 86,295 63,000 Year 86,400 4.000 Year 5 69,000 21,000 58.000 Year 2 Year) 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 $ 189,325 Chart Values are Based on: = % Year Cash Inflow x PV Factor Present Value 1 2 = 3 #H 4 5 Project B $ 153,960 PV Factor Present Value Initial Investment Year Cash Inflow 1 2 3 4 5 Required B Exercise 11-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% 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 $(189,325) Projects $(153,960) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Year 4 Year 5 51.000 58,000 36,295 86,400 69,000 28,000 53,000 63,000 84.000 21,000 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 Numerator Choose Denominator - Profitability Index Profitability index Pro Project of the company can only select one project, which should choose? (Required A