Following is information on two alternative investments being considered by Jin Company. The company requires a 10% return from its investments.

For each alternative project compute the
(a) Net present value, and
(b) Profitability index. If the company can only select one project, which should it choose?Explain.

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ProjectA Project B Initial investment... Expected net cash flows in year: 40,000 56,000 80,295 90.400 32.000 50,000 66,000 72,000 55000 290 55,000