6. Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 10% 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 $ (82,000) $ (121,000) Net cash flows in: Year 1 26,000 61,500 Year 2 36,500 51,500 Year 3 61,500 41,500

a. Compute each projects net present value.

b. Compute each projects profitability

Net Cash Flows Present Value of 1 at 10% 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