accounting 2

Following is Information on two alternative investments being considered by Tiger Co. The company requires a 5% 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.) Initial investment Expected net cash flows in years Project x1 $(82,000) Project x2 $(124,000) 26,000 36,500 61,500 3 61,500 51,500 41,500 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? Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 5% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Required A Required B Compute each project's profitability Index, if the company can choose only one project, which should it choo Profitability Index Choose Numerator: 1 Choose Denominator: = Profitability Index Profitability index Project X1 Project x2 If the company can choose only one project, which should it choose