Question: 4. Homework i Saved Help Save & Exit Check my Exercise 24-10 NPV and profitability index LO P3 Following is information on two alternative investments



4. Homework i Saved Help Save & Exit Check my Exercise 24-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% returrs from its investments PV or $1. Fof $1. PVA of S1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial Investment Expected net cash flows in year Project A (165,325) Project $(158,960) Pin 50,000 50,000 26,295 84,400 65,000 35,000 44,000 66.000 76,000 32,000 o. 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 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 $ 185,325 Chart Values are Based on: 10% Year Cash Intlow PV Factor 1 50,000 2 56,000 3 76,295 x 4 84 400 5 63.000 Present Value Homework Saved Initial Investment Year Cash Inflow Project B 158,960 PV Factor Present Value 1 2 3 4 11 H11 5 Baltic Required B > ework Saved 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 Choose Denominator: Choose Numerator: Profitability Index Profitability index 0 Project Projed B If the company can only select one projed, which should it choose? 0
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