Can you please assist with this problem and explain how the correct answer was derived? Thank you.

Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments. (PV of $1. EV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 $(122,000) Project X2 $(204,000) Initial investment Expected net cash flows in: Year 1 46,000 56,500 81,500 91,500 81,500 71,500 Year 2 Year 3 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.) Present Value of Net Cash Flows Present Value of 1 at 5% Net Cash Flows Project X1 $ 46,000 Year 1 0.9524 43,810 56,500 51,246 Year 2 0.9070 Year 3 81,500 0.8638 70.400 $184,000 165,456 Totals $ Amount invested Net present value 165,456 Project X2 $ 91,500 Year 1 0.9524 $ 87,145 Year 2 81,500 0.9070 73,921 61,762 Year 3 71,500 0.8638 $ 244,500 Totals 222,828 Amount invested (204,000) Net present value 18,828 KRequired A Required B Answer is not complete. 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 Profitability Index Choose Denominator: Choose Numerator: Profitability index Present value of net cash flows Initial investment Project X1 165,456 122,000 1.36 Project X2 222,827 1.09 204,000 If the company can choose only one project, which should it choose? Project X1 Required A Required B