12)

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

	Project X1	Project X2
Initial investment		$	(94,000	)			$	(148,000	)
Expected net cash flows in year:
1			32,000					70,500
2			42,500					60,500
3			67,500					50,500

1(a)	Compute each project?s net present value.

net cash flows Project x year1 year2 year3 totals amount ivested net present value project x2 year 1 year2 year 3 totals amount ivested net present value presnt value of net cash present value flow