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Following is information on two alternative Investments being considered by Jolee Company. The company requir- 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.) Initial investment Expected net cash flows in: 04 Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(173,325) Project B $(157,960) 46,000 31,000 55,000 47,000 76,295 60,000 95,400 69,000 62,000 31,000 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. Initial Investment Project A $ 173,325 Chart Values are Based on: 6% Year Cash Inflow x PV Factor Present Value 1 46,000 x 2 55,000 x 3 76,295 x 4 95,400 x 5 62,000 x Present value of cash inflows Present value of cash outflows Net present value Project B Initial Investment $ 157,960 Required A Required B For each alternative project compute the net present value. Initial Investment Project A $ 173,325 Chart Values are Based on: 6% Year Cash Inflow x PV Factor Present Value 1 46,000 x 2 55,000 x 3 76,295 x 4 95,400 x 5 62,000 x Present value of cash inflows Present value of cash outflows Net present value Project B Initial Investment 157,960 Year Cash Inflow PV Factor Present Value 1 31,000 x 2 47,000 x 3 60,000 x 4 69,000 x 5 31,000 x Present value of cash inflows Present value of cash outflows Net present value 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.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(173,325) Project 8 $(157,960) 46,000 31,000 55,000 47,000 76,295 60,000 95,400 69,000 62,000 31,000 <3 choose

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