Exercise 24-10 (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 an 8% return from its investments. (PV of $1. EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Initial investment Net cash flows in: Year 1 Year 2 Year 31 Project X1 $ (98,000) Project X2 $ (156,000) 34,000 73,500 44,500 63,500 69,500 53,500 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? Answer is complete but not entirely correct. 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.) 000 Net Cash Flows Present Value of 15 at 8% Present Value of Net Cash Flows Project X1 Year 1 $ 34,000 0.9615 $ 32.691 Year 2 44,500 09246 41.1451 Year 31 69.500 08090 Totals $ 148,000 61.706 135.622 08.000 Initial investment Net present value Project X2 5 37.622 < Prev 8 of 10 Next >>