Question: please help I will give a thumbs up Exercise 25-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered


Exercise 25-10 NPV and profitability index LO P3 Following is information on two alternative investments being considered by Jolee Company. The company requires a 8% return from its investments. (PV of $1. FV of $1. PVA of $1 and FVA of $1). (Use appropriate factor(s) from the tables provided.) Project Project Initial investment $(174,325) $(149,960) Expected net canh flows in year: 55,000 43,000 52,000 79,295 89,400 72,000 52.000 62,000 73.000 20.000 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 174,325 Chart Values are Based on: Year Cash Inflow PV Factor Present Value 1 2 174,325 Initial Investment $ Chart Values are Based on: i = Year Cash Inflow x PV Factor II Present Value 1 = 2 2 11 3 III 4 4 5 11 + Initial Investment Project B $ 149,960 PV Factor Year Cash Inflow X Present Value 1 11 2 2 11 3 11 4 = = 5 its investments (PV of $1. FV of $1. PVA of $1 and FVA of $1. (Use appropriate factor(s) from the tables provided. Initial investment Expected net cash flows in year: 1 2 Project A $(174,325) 55,000 52,000 79,295 89,400 72,000 Project B $(149,960) 43,000 52,000 62,000 73,000 20,000 unut N 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 shu 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 Profitability index Project A Project B 0 If the company can only select one project, which should it choose? 0
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