Following is information on two alternative investments being considered by Jin Company. The company…


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29.99

Following is information on two alternative investments being considered by Jin Company. The company… 1 answer below » Following is information on two alternative investments being considered by Jin Company. The company requires a 10% return from its investments. Project A Project B Initial investment $(175,000) $(145,000) Expected net cash flows in year: 1 40,000 32,000 2 56,000 50,000 3 80,295 66,000 4 90,400 72,000 5 55,000 29,000 For each alternative project compute the (a) net present value, and (b) profitability index. If the company can only select View complete question » Following is information on two alternative investments being considered by Jin Company. The company requires a 10% return from its investments. Project A Project B Initial investment $(175,000) $(145,000) Expected net cash flows in year: 1 40,000 32,000 2 56,000 50,000 3 80,295 66,000 4 90,400 72,000 5 55,000 29,000 For each alternative project compute the (a) net present value, and (b) profitability index. If the company can only select one project, which should it choose? Explain. View less » Jul 24 2014 07:50 AM

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