Following is information on two alternative investments being considered by Jolee Company. The company requires a...

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Following is information on two alternative investments beingconsidered by Jolee Company. The company requires a 8% return fromits investments. (PV of $1, FV of $1, PVA of $1 and FVA of $1).(Use appropriate factor(s) from the tables provided.) Project AProject B Initial investment $ (185,325 ) $ (153,960 ) Expected netcash flows in year: 1 38,000 28,000 2 59,000 43,000 3 81,295 65,0004 79,400 85,000 5 73,000 38,000 a. For each alternative projectcompute the net present value. b. For each alternative projectcompute the profitability index, if the company can only select oneproject, which should it choose?

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Ans Project A 1 38000 092593 3518519 2 59000 085734 5058299 3 81295 079383 6453459 4 79400 073503 5836137 5 73000 068058 4968257 Total Present value of cash inflow 25834671 Net present See Answer

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