Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from Its investments. (PV of $1. EV of $1. PVA of$1, and EVA of $1 (Use appropriate factor(s) from the tables provided.) Project A $(189, 325) Project Initial investnent Expected net cash flows in: $(141,960) Year 1 41,000 28, eee Year 2 se, 000 53,000 8, 295 48, eee 74, eee 24, e00 Year 3 Year 4 9,400 Year S 54,000 a. For each altenative 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?
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from Its investments. (PV of $1. EV of $1. PVA of$1, and EVA of $1 (Use appropriate factor(s) from the tables provided.) Project A $(189, 325) Project Initial investnent Expected net cash flows in: $(141,960) Year 1 41,000 28, eee Year 2 se, 000 53,000 8, 295 48, eee 74, eee 24, e00 Year 3 Year 4 9,400 Year S 54,000 a. For each altenative 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?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hi expert please answer same as required to put in the boxes making Same table
![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
If the company can only select one project, which should it choose?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdff3592-5999-4169-b2d7-378fbccdb0f4%2F9d234845-89d6-4b23-b0e3-8513d27fe49d%2Fp5x4dw_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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
If the company can only select one project, which should it choose?
![Following is Information on two alternative Investments belng considered by Jolee Company. The company requires a 6% return from
Its Investments. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.)
Initial investnent
Expected net cash flows in:
Project A
$(189, 325)
Project B
$(141,960)
Year 1
41,00e
se, 000
88, 295
28.000
53,000
48, e00
74, e00
Year 2
Year 3
Year 4
89, 400
Year 5
54,000
24, e00
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 e
For each alternative project compute the net present value.
Project A
Initial Investment
189.325
Chart Values are Based on:
%
Year
Cash Inflow
PV Factor
Present Value
%3D
1
2
%3D
3
%3D
4
%3D
5
Project B
Initial Investment
141.900
Year
Cash Inflow
PV Factor =
Present Value
1
2
%3D
3
4
%3D](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbdff3592-5999-4169-b2d7-378fbccdb0f4%2F9d234845-89d6-4b23-b0e3-8513d27fe49d%2F2csbfw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Following is Information on two alternative Investments belng considered by Jolee Company. The company requires a 6% return from
Its Investments. (PV of $1. EV of $1. PVA of $1, and FVA of $1) (Use approprlate factor(s) from the tables provided.)
Initial investnent
Expected net cash flows in:
Project A
$(189, 325)
Project B
$(141,960)
Year 1
41,00e
se, 000
88, 295
28.000
53,000
48, e00
74, e00
Year 2
Year 3
Year 4
89, 400
Year 5
54,000
24, e00
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 e
For each alternative project compute the net present value.
Project A
Initial Investment
189.325
Chart Values are Based on:
%
Year
Cash Inflow
PV Factor
Present Value
%3D
1
2
%3D
3
%3D
4
%3D
5
Project B
Initial Investment
141.900
Year
Cash Inflow
PV Factor =
Present Value
1
2
%3D
3
4
%3D
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