Exercise 11-11 Net present value, profitability index LO P3 Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments (PV of $1. EV of $1. PVA of S1, and FVA Of S1) (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $190,000) $(140,000) Expected net cash flows in Year 67,500 Year 2 40,500 57,500 Year 3 65,500 47,500 30,000 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? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's not present value. (Round your final answers to the nearest dollar.) Net Cash Present Value Present Value of Flows of 1 at 4% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 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? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Present Value Present Value of Flows of 1 at 4% Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Required 8 > --- Expected net cash flows in: Year 1 Year 2 Year 3 30,000 40,500 65,500 67,500 57,500 47,500 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? 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 Numerator: Choose Denominator Profitability Index Profitability index Project x1 Project X2 of the company can choose only one project, which should it choose?