Exercise 11-10 (Algo) Net present value, unequal cash flows, and profitability index LO P3 Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% return from its investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Project X2 Initial investment Project X1 5 (104,000) $ (168,000) Net cash flows in: Year 1 37,000 78,000 Year 2 47,500 68,000 Year 3 72,500 58,000 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? Required A Required B Required C Compute each project's net present value. Note: Round your final answers to the nearest dollar. Project X1 Year 1 Year 2 Year 31 Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's profitability index. Project X1 Project X2 Numerator: Profitability Index Denominator: Profitability Index Profitability index Required A Required C > Complete this question by entering your answers in the tabs below. Required A Required B Required C If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index?