Answer a.
Answer b.
Project A:
Profitability Index = Present Value of Net Cash Flows / Initial
Investment
Profitability Index = $281,907 / $182,325
Profitability Index = 1.55
Project B:
Profitability Index = Present Value of Net Cash Flows / Initial
Investment
Profitability Index = $232,242 / $144,960
Profitability Index = 1.60
Following is information on two alternative investments being considered by Jolee Company. The company requires a...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 A $ (182,325) Project B $ (144,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 54,000 47,000 91,295 85,400 60,000 42,000 55,000 67,000 83,000 29,000 a. For each alternative...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 $(184,325) Project B $(144,960) Initial investment Expected net cash flows ini Year 1 Year 2 Year 3 Year 4 Year 5 42,000 49,000 84,295 81,400 61,000 28,000 50,000 54,000 77,000 30,000 a. For each alternative project compute the...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% 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 A Project B Initial investment $ (178,325 ) $ (144,960 ) Expected net cash flows in: Year 1 53,000 36,000 Year 2 59,000 52,000 Year 3 92,295 52,000 Year 4 95,400 70,000 Year 5 57,000 31,000 a. For...
FQllowing is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from itslinvestments. (PV of $1. FV of $1,. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(179,325) Project B $(158,960) Initial investment Expected net cash flows in year 1 43,000 42,000 76,295 82,400 65,000 33,000 48,000 51,000 80,000 23,000 2 a. For each alternative project compute the net present value b. For each alternative...
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 $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(184,325) Project B $(157,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 41,000 41,000 89, 295 80,400 55,000 42,000 45,000 64,000 75,000 38,000 a. For each alternative project...
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 $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A Project B Initial investment $ (180,325 ) $ (146,960 ) Expected net cash flows in year: 1 35,000 35,000 2 49,000 58,000 3 89,295 54,000 4 82,400 76,000 5 61,000 36,000 a. For each alternative project...
Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% 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 A $ (186,325) Project B $ (151,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 50,000 53,000 83,295 80,400 71,000 27,000 60,000 64,000 68,000 30,000 a. For each alternative...
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 $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project A $(184,325) Project B $(159,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 42,000 40,000 88,295 94,400 69,000 36,000 49,000 48,000 83,000 36,000 a. For each alternative project compute...
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 A $(190, 325) Project B $(159,960) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Year 4 Year 5 46,000 46,000 75,295 82,400 67,000 33,000 44,000 62,000 77,000 39,000 a. For each alternative project...
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 A Project B Initial investment $ (185,325 ) $ (160,960 ) Expected net cash flows in: Year 1 52,000 38,000 Year 2 53,000 51,000 Year 3 74,295 63,000 Year 4 92,400 70,000 Year 5 58,000 21,000 a. For...