Blue car enterprise provided the following information on two alternative investments being considered. the company requires a 7% return from its investments. ...

a. compute each projects net present value

b. compute each projects profitability index. if the company can chooske only one project, which should it choose?

(please see attachments)

Blue Car Enterprise provided the following information on two alternative investments being considered. The company requires a 7% return from its investments. (PV of $1. FV of $1. PVA of $1 and EVA of $1 (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 (86,000) $(132,000) Expected net cash flows in Year Year 29.000 38,500 63,500 64,500 54,500 46,500 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? ter 29 Graded Homework 1 Saved Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value Present Value of of 1 at 7% Net Cash Flows Project X 1 pped Year 1 $ 28,000 Year 2 38.500 Book Year 3 63.500 130,000 Totals $ Amount invested Net present value Project X Year 1 Year 2 Year 3 Totals Amount invested Net present value $ 0 Required 3 > 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 Denominator: Choose Numerator: = Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose?