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Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from as investments (PV of S1 FV. S1. PVA $1. and EVA OLSU (Use appropriate factor(s) from the tables provided.) Project A Project Initial investment 5(172,125) 3(149,060) Expected net cash flows in Year a 36,000 43,000 Year 2 55,000 57,000 Year) 73,295 $2,000 Year 4 90,400 77,000 Year 5 65.000 21,000 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 net present value Project A Initial Investment 172.325 Chart Values are based on: % Year Cash Intlow PV Factor Present Value 1 - 2 3 4 15 Project B $ 143,960 Initial investment Project B $ 143,960 Initial Investment Year Cash Intlow x PV Factor Present Value 1 2. 3 = 4 5 IR 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 FVAL $1) (Use appropriate factor(s) from the tables provided.) Project A 5(172, 325) Project B $(143,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 36,000 55,000 73,295 90,400 65,000 43,000 57,000 52,000 77,000 21,099 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 Denominator: Choose Numerator: - Profitability Index Profitability Index 0 Project A Project B If the company can only select one project, which should it choose

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