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1 20 points Exercise 11-10 (Algo) Net present value, unequal cash flows, and profitability index LO P3 Following is information on two alternative Investment projects

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1 20 points Exercise 11-10 (Algo) Net present value, unequal cash flows, and profitability index LO P3 Following is information on two alternative Investment projects being considered by Tiger Company. The company requires an 8% return from its investments (py of St. E of S1. PVA of St. and EVA of Si) (Use appropriate factor(s) from the tables provided.) Project xi Project x2 Initial investment 5 (88,600) 3 (1.36,000) et cash flows in 29,000 66,000 Year 2 56,000 64.500 46,000 .. Compute each project's net present value b. Compute each project's profitability Index c. If the company can choose only one project, which should it choose on the basis of profitability index? Book Year 1 39,500 Year Hint As Complete this question by entering your answers in the tabs below. Required A Required Required theferences Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value Present Value of of tato Net Cash Flows Project X 1 Yeart Yew 2 Yes Total In invest fie presenta Project 2 Year! Year 2 Year Total India vest Nel present value Required) 11 Exercise 11-10 (Algo) Net present volue, unequal cash flows, and profitability index LO P3 Book Following is Information on two alternative investment projects being considered by Tiger Company. The company requires an 8% return from its investments (PV of S1. Ev of $1. PVA of S1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $ (3,000) $ (136,000) Net cash flows in: Year 1 29, eee 66,000 Year 2 39,500 56,000 Year 3 64,500 46,000 .. Compute each project's net present value. b. Compute each project's profitability Index c. If the company can choose only one project, which should it choose on the basis of profitability Index? Hir Complete this question by entering your answers in the tabs below. De Pent 0 Required A Required B Required Compute each project's profitability index, Numerator Profitability Index Denominator 1 Profitability Index Profitability Index Pro X1 Project

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