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A, B and C please! Following is Information on two alternative Investment projects being considered by Tiger Company. The company requires a 4% return from
A, B and C please!
Following is Information on two alternative Investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1. FV of S1 PVA of $1 and EVA of $i) (Use appropriate factor(s) from the tables provided.) Project Xi Project x2 Initial investment $ (110,000) $ (180,000) Net cash flows in: 40,000 82,500 50, 500 22,500 75,500 62,500 a. Compute each project's net present value. b. Compute each project's profitability Index. c. If the company can choose only one project, which should it choose on the basis of profitability Index? Year 1 Year 2 Year Complete this question by entering your answers in the tabs below. Required A Required B Required Compute each project's not present value. (Round your final answers to the nearest dolor.) Net Cash Present Value Present Value of Flows of 1 at 4% Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals $ 0 S 0 Stial investment Not present value 5 0 a. Compute eacn projects net present value. b. Compute each project's profitability Index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required A Required B Required Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 4% Present Value of Net Cash Flows $ 0 $ 0 $ 0 Project X 1 Year 1 Year 2 Year 3 Totals Initial investment Net prosent value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value $ 0 $ 0 $ 0 Regud Required B > Net cash flows in Year 1 Year 2 Year 3 40,000 50,500 75,500 82,500 72,500 62,500 a. Compute each project's net present value. b. Compute each project's profitability index c. If the company can choose only one project, which should it choose on the basis of profitability Index? Complete this question by entering your answers in the tabs below. Required A Required B Required Compute each project's profitability Index Profitability Index Denominator Numerator: Profitability Index Profitability index 0 Project X 1 Project X2 0 Initial investment Net cash flows in: Project X1 $ 110,000) Project X2 5 (180,000) Year 1 Year 2 Year 3 40,000 50,500 75,500 82,500 72,500 62,500 a. Compute each project's net present value. b. Compute each project's profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required A Required Required If the company can choose only one project, which should it choose on the basis of profitability Index? it the company can choose only one project, which should it choose on the basis of profitability index? Step by Step Solution
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