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5 Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% return from its investments. (PV of S1,

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5 Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% return from its investments. (PV of S1, FV of $1. PVA of $1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $(128,000) $(193,000) Expected net cash flows int Year 2 86,000 Year) 84,500 76.000 Year 1 96,000 49,000 59,500 Book a. Compute each project's net present value. b. Compute each project's profitability index. If the company can choose only one project, which should it choose? Print Complete this question by entering your answers in the tabs below. ferences Required A Required B Compute each project's net present value. (Round your answers to the nearest whole dollar.) Net Cash Present Value Present Value of Flow of 1 at 8% Net Cash Flow Project X 1 Year 1 Year 2 Year 3 Totals Amount inwested Net present value Project X2 Year 1 You 2 Year 3 Complete this question by entering your answers in the tabs belo Required A Required B Compute each project's net present value. (Round your answers to the nei Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Project X1 Year 1 Year 2 ces Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Required A Requirt Following is information on two alternative investments being considered by Tiger Co. The company requ investments. (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables pro Project x1 $(128,000) Project x2 $(193,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 49,000 59,500 84,500 96,000 86,000 76,000 a. Compute each project's net present value. b. Compute each project's profitability index. If the company can choose only one project, which should it Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's profitability index. If the company can choose only one project, which should it choose Profitability Index Choose Numerator: Choose Denominator: / Project X1 Project X2 If the company can choose only one project, which should it choose? Profitability Index Profitability index

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