Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $410,000 and has a present value of all its cash flows of $1,200,000. Project 2 requires an initial investment of $4 million and has a present value of all its cash flows of $7 million. (a) Compute the profitability index for each project. (b) Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Required A Required B Compute the profitability index for each project. Project 1 Project 2 Numerator: Profitability Index Denominator: = Profitability Index = Profitability index < Required A Required B > Yokam Company is considering two alternative projects. Project 1 requires an initial investment of $410,000 and has a present value of all its cash flows of $1,200,000. Project 2 requires an initial investment of $4 million and has a present value of all its cash flows of $7 million. (a) Compute the profitability index for each project. (b) Based on the profitability index, which project should the company select? Complete this question by entering your answers in the tabs below. Required A Required B Based on the profitability index, which project should the company select? Based on the profitability index, which project should the company select? < Required A Required B Required information [The following information applies to the questions displayed below.] Following is information on an investment in a manufacturing machine. The machine has zero salvage value. The company requires a 6% return from its investments. Initial investment Net cash flows: Year 1 Year 2 Year 3 $ (210,000) 155,000 108,000 111,000 Compute this machine's net present value. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Round all present value factors to 4 decimal places. Round present value amounts to the nearest dollar. Net Cash Flow Present Value Factor Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals Initial investment Net present value