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 7% return from its investments (PV of $1, EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Project X1 $ (106,000) Project X2 Net cash flows in: Year 1 Year 2 Year 3 $ (172,000) 38,000 79,500 48,500 69,500 73,500 59,500 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 C Compute each project's net present value. (Round your final answers to the nearest dollar) Value Rosent Valus of Check my work 5 points Required A Required B Required C Compute each project's net present value. (Round your final answers to the nearest dollar) eBook Net Cash Flows Present Value of 1 at 7% Present Value of Net Cash Flows @ Project X1 Year 1 Hint Year 2 Year 3 Ask Totals Print Initial investment Not present value Project X2 Year 1 Year 21 References Year 3 Totals Initial investment Net present value Required> 5 points Book 30,000 19,500 Year 2 Year 3 48,500 69,500 73,500 59,500 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. Hist 0 0 0 Required A Required B Required C Ask Compute each project's profitability index. Print Profitability Index Numerator Denominator: Profitability Index Profitability index References Project X1 Project X2 Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments. (PV of $1. EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project X2 Project X1 Initial investment 5 (106,000) s (172,000) Net cash flows in: Year 1 38,000 79,500 Year 2 48,500 69,500 Year 3 73,500 59,500 ebook 01 He 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. Ak Required A Required S Required C Pit Ronces 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? Required