Following is information on two alternative investments being considered by Jolee Company. The company requires a 12% return from its investments. (FV of $1, PV of $1, FVA of $1 and PVA of $1). (Use appropriate factor(s) from the tables provided.) Project A Project B
Initial investment $ (179,325) $ (150,960)
Expected net cash flows in year:
1 41,000 41,000
2 40,000 50,000
3 74,295 64,000
4 88,400 84,000
5 57,000 26,000
1(a) For each alternative project compute the net present value.
Project A
Initial Investment $179,325
Chart Values are Based on:
i = %
Year Cash Inflow x PV factor = Present Value
1 =
2 =
3 =
4 =
5 =
Project B
Initial Investment $150,960
Year Cash Inflow x PV factor = Present Value
1 =
2 =
3 =
4 =
5 =
1(b) For each alternative project compute the profitability index.
Profitability Index
Choose Numerator: / Choose Denominator: = Profitability Index
/ = Profitability index
Project A
Project B
2. Assume If the company can only select one project, which should it choose?
Project B
Project A

Chipotle mexican grill, the american mexican food chain restaurant, opened its first restaurant in the united states in 1993. in 2010, chipotle opened its first restaurant in the united kingdom in london on charing cross. by late may 2013, the company had 6 restaurants in london, but they have not been doing well even though the british have taken a liking to mexican food (boyle, 2013). why has this successful u.s. chain not seen the same success overseas? if you were chipotle's ceo, how would you fix this situation? what is an alternative means of venturing outside of its domestic markets that may allow for a competitive advantage? then, pick a company that has not yet expanded overseas, or if it has expanded, suggest a different strategy for entrance into an overseas market that you feel would be more strategic for the company. research its rivals in the global marketplace and market conditions in the overseas market you are targeting. justify your recommended entry strategy based on these industry and market conditions.

After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?

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