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Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% 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 $(186,325) $(155,960) Expected net cash flows in: Year 1 53,000 42,800 Year 2 56,000 49,000 Year 3 87,295 50,000 Year 4 81,400 82,000 Year 5 60,000 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? Project A $ 186,325 Initial Investment Chart Values are Based on: i = % Year Cash Inflow X PV Factor = Present Value 1 11 2 11 3 Il 4 = 5 Project B $ 155,960 Initial Investment Year Cash Inflow X PV Factor = Present Value 1 2 3 10 4 11 5 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: 1 Choose Denominator: Profitability Index 1 Profitability index Project A Project B If the company can only select one project, which should it choose?

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