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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 $(184,325) Project B $(159,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 42,000 40,000 88,295 94,400 69,000 36,000 49,000 48,000 83,000 36,000 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 net present value. Project A Initial Investment $ 184,325 Chart Values are Based on: Project A $ 184,325 Initial Investment Chart Values are Based on: % Year Cash Inflow PV Factor II Present Value 1 = N = 3 Il 4 5 II II Initial Investment Project B $ 159,960 PV Factor Year Cash Inflow = Present Value 11 2 3 4 II II II 5 Profitability Index 1 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? 0

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