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 5% 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 Net cash flows ins Year 1 Year 2 Year 3 Project X1 $(112,000) 41,000 51,500 76,500 Project X21 $ (184,000) 84,000 74,000 64,000 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. (Round your final answers to the nearest dollar.) Present Value of Net Cash Flows 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 Cash Flows 41,000 51,500 76,500 $ 169,000 $ $ 0 Present Value of 1 at 5% $ $ $ $ 84,000 74,000 64,000 222,000 222,000 0 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 profitability index. Project X1 Project X2 Numerator: Profitability Index Requise Denominator: =Profitability Index Profitability index MO 0 0