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Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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					Project B
Initial investment		$	(184,325	)			$	(159,960	)
Expected net cash flows in:
Year 1			43,000					35,000
Year 2			42,000					47,000
Year 3			88,295					64,000
Year 4			83,400					82,000
Year 5			62,000					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?

Project A Initial Investment $ 184,325 Chart Values are Based on: Year Cash Inflow X PV Factor - Present Value UNA Initial Investment Year Cash Inflow Project B $ 159,960 X PV Factor = Present Value For each alternative project compute the profitability index. If the company can only select choose? Profitability Index 1 Choose Denominator: - Choose Numerator: Profitability Index Profitability index Project A Project B If the company can only select one project, which should it choose

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