Following is information on two alternative investments being considered by Jolee Company. The company requires...
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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.)
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 $(182,325) Project B $ (153, 960) Initial investment Expected net cash flows in year: 55,000 60,000 79,295 85,400 63,000 41,000 56,000 60,000 67,000 28,000 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. Present Value Project A Initial Investment $ 182,325 Chart Values are Based on: 8% Year Cash Inflow X PV Factor = 55,000 x 60,000 X 79,295 x 85,400 63,000 X 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 Project A Project B If the company can only select one project, which should it choose?
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