Question: 40 0 Saved Help Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments,






40 0 Saved Help Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments, (PV of $1. FV of $1. PVA of S1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project $(152,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 Project A $(181,325) 51,000 58,000 74,295 79,400 58,000 26,000 45,000 53,000 66,000 35,000 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. Project A Initial Investment $ 181,325 Chart Values are based on: a % Year Cash Inflow X PV Factor Present Value 1 Required A Required B For each alternative project compute the net present value. Project A Initial Investment $ 181,325 Chart Values are Based on: % Year Cash Inflow X PV Factor = Present Value 1. 2 3 4 II II 11 5 Project B $ 152,960 Initial Investment Year Cash Inflow X PV Factor = Present Value 1 = 2 11 3 11 4 11 5 II 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 Numerator: Choose Denominator: = Profitability Index 1 Profitability index Project A Project B If the company can only select one project, which should it choose?
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