Question
In: Accounting
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 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 | $ | (176,325 | ) | $ | (157,960 | ) | ||||
| Expected net cash flows in year: | ||||||||||
| 1 | 36,000 | 28,000 | ||||||||
| 2 | 57,000 | 44,000 | ||||||||
| 3 | 91,295 | 55,000 | ||||||||
| 4 | 81,400 | 68,000 | ||||||||
| 5 | 68,000 | 30,000 | ||||||||
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
Solutions
ekkarill92 answered 2 years agoRelated Solutions
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 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 $ (189,325 ) $ (144,960 ) Expected net
cash flows in year: 1 54,000 38,000 2 45,000 59,000 3 90,295 52,000
4 91,400 75,000 5 56,000 32,000 a. For each alternative project
compute...
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
Project B
Initial investment
$
(171,325
)
$
(149,960
)
Expected net cash flows in:
Year 1
48,000
33,000
Year 2
55,000
56,000
Year 3
78,295
54,000
Year 4
91,400
82,000
Year 5
54,000
31,000
a. For...
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
Project B Initial investment $ (174,325 ) $ (145,960 ) Expected net
cash flows in: Year 1 40,000 41,000 Year 2 42,000 57,000 Year 3
74,295 58,000 Year 4 88,400 70,000 Year 5 58,000 36,000 a. For...
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 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
$
(184,325
)
$
(154,960
)
Expected net cash flows in
year:
1
50,000
29,000
2
60,000
55,000
3
75,295
48,000
4
78,400
83,000
5
71,000
22,000
a. For each alternative project...
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
Project B
Initial investment
$
(188,325
)
$
(154,960
)
Expected net cash flows in:
Year 1
50,000
33,000
Year 2
41,000
48,000
Year 3
80,295
57,000
Year 4
87,400
68,000
Year 5
64,000
34,000
a. For...
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 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
$
(184,325
)
$
(141,960
)
Expected net
cash flows in:
Year 1
41,000
31,000
Year 2
43,000
59,000
Year 3
89,295
55,000
Year 4
95,400
71,000
Year 5
68,000
31,000
a. For...
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
Project B
Initial investment
$
(179,325
)
$
(148,960
)
Expected net cash flows in:
Year 1
41,000
32,000
Year 2
60,000
44,000
Year 3
75,295
59,000
Year 4
88,400
73,000
Year 5
65,000
29,000
a....
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 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
$
(189,325
)
$
(159,960
)
Expected net cash flows in:
Year 1
49,000
42,000
Year 2
41,000
51,000
Year 3
87,295
66,000
Year 4
81,400
77,000
Year 5
60,000
23,000
a. For...
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 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
$
(175,325
)
$
(142,960
)
Expected net cash flows in:
Year 1
40,000
33,000
Year 2
44,000
43,000
Year 3
91,295
57,000
Year 4
88,400
78,000
Year 5
64,000
36,000
a. For...
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 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
$
(175,325
)
$
(142,960
)
Expected net cash flows in:
Year 1
40,000
33,000
Year 2
44,000
43,000
Year 3
91,295
57,000
Year 4
88,400
78,000
Year 5
64,000
36,000
a. For...
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