Sunday 22 June 2014

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.)

Following is information on two alternative investments being considered by Jolee Company. The company requires a 6% return from its investments. (PV of $1FV of $1PVA of $1, and FVA of $1). (Use appropriate factor(s) from the tables provided.)


   Project A Project B
  Initial investment $ (183,325 ) $ (146,960 )
  Expected net cash flows in year:
1 50,000 42,000
2 55,000 54,000
3 85,295 55,000
4 80,400 69,000
5 56,000 28,000



1(a)
For each alternative project compute the net present value.
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