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Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments (FV of $1, PV of $1. FVA of $1 and PVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(173,325) Project B S(155,960) Initial investment Expected net cash flows in year on WN 43.000 47.000 87 295 78,400 57,000 26,000 60,000 68,000 75000 26,000 1(a) For each alternative project compute the net present value Project A Initial Investment 173,325 Chart Values are Based on: Year Cash Inflow X PV factor = Present Value Initial Investment Year Cash Inflow Project B 155,960 PV factor X = Present Value 1(b) For each alternative project compute the profitability index Profitability Index Choose Denominator: Choose Numerator: = Profitability Index Profitability index Project A Project B

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