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 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 $(176,325) Project B $(153,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 46, eee 42,800 81,295 89,480 56,000 27,000 44,000 57,000 67,000 22,000 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 176,325 Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value Initial Investment Year Cash Inflow | X Project B S 153,980 PV Factor = Present Value F Required A Required B. 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 $(176,325) Project B $(153,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 46,000 42,800 81,295 89,480 56,000 27,000 44,000 57,000 67,800 22,000 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 profitability index. If the company can only select one project, which should it choose? Profitability Index T 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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