Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta

Exercise 40

Following is information on two alternative investments being considered by Jolee Company. The company requires a 10% return from its investments.

For each alternative project compute the (a) net present value, and (b) profitability index. (Round your answers in part b to two decimal places.) If the company can only select one project, which should it choose Explain.