Compute each project's net present value.

Note: Do not round intermediate calculations. Round your present value fact

to the nearest whole dollar.Required $2$

Compute each project's profitability index.

Note: Do not round intermediate values. Enter your answers rounded to the nearest whole dollar.

$\backslash$table$[[$Profitability Index$],[,$Numerator:,I,Denominator:,,,$],[,,$I,,$=,$Profitability index,$],[$Project A$,,,,,,],[$Project B$,,,,,,]]$Compute each project's net present value.

Note: Do not round intermediate calculations. Round your present value fact

to the nearest whole dollar.Rowan Company is considering two alternative investment projects. Each requires a $$270,000$ initial investment. Project A is expected to generate net cash flows of $$80,000$ per year over the next six years. Project B is expected to generate net cash flows of $$70,000$ per year over the next seven years. Management requires an $9\%$ rate of return on its investments. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Required:

Compute each project$$s net present value.

Compute each project$$s profitability index.

If the company can choose only one project, which should it choose, based on profitability index?