Question
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 | |
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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.)
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Required 2.
Compute each projects profitability index.
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Required 3
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
If the company can choose only one project, which should it choose on the basis of profitability index?
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