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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. EV of $1. PVA of S1, and EVA of $1) (Use appropriate factor(s) from the tables provided) Project A Project Initial investment $(179,325) $(143,960) Expected net cash flows in Year 1 40,000 32,000 Year 2 54,900 54,000 Year 3 77,295 65,000 Year 4 81,400 72,000 Years 61,000 34,000 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 S 179,325 Chart Values are Based on: Project A Initial Investment $ 179,325 Chart Values are Based on: % II Year Cash Inflow PV Factor 11 Present Value 1 1 Il N 3 11111111 4 5 5 Initial Investment Project B $ 143,960 PV Factor Year Cash Inflow Present Value 1 = 2 11 3 11 4 6 11 Project B $ 143,960 Initial Investment Year Cash Inflow PV Factor Present Value 1 11 N 11 3 11 4 11 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 Project A Project B If the company can only select one project, which should it choose?

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