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3 Part question please answer all 3 parts for an upvote Following is information on two alternative investment projects being considered by Tiger Company. The

3 Part question please answer all 3 parts for an upvote

Following is information on two alternative investment projects being considered by Tiger Company. The company requires an 8% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Project X1 Project X2
Initial investment $ (108,000) $ (176,000)
Net cash flows in:
Year 1 39,000 81,000
Year 2 49,500 71,000
Year 3 74,500 61,000

a. Compute each projects net present value. b. Compute each projects profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index?

Required 1

Compute each projects net present value. (Round your final answers to the nearest dollar.)

Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows
Project X1
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Project X2
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows
Project X1
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Project X2
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value

Required 2.

Compute each projects profitability index.

Profitability Index
Numerator: / Denominator: = Profitability Index
/ = Profitability index
Project X1
Project X2

Required 3

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Required A

Required B

Required C

If the company can choose only one project, which should it choose on the basis of profitability index?

If the company can choose only one project, which should it choose on the basis of profitability index?

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