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 on 8% return from its investments. (PV of $1. FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project X1 Project x2 Initial investment $ (118, cee) $ (196.eee) Net cash flows in: Year 1 44,000 88,500 Year 2 54,500 78,500 Year 3 79,500 68,500 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 Requtred Compute each project's net present value. (Round your final answers to the nearest dollar) Nath Present Value Present Value of Fows of lates NetCash Bows Project x1 Year 1 Year 2 Years Totals 5 investment Net present Value Project X2 Year1 0 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 Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value Present Value of oll at 8% Net Canh Flow Project X1 Year 1 Year 2 Year 3 $ 0 $ $ Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 $ 0 $ 0 Totals Initial investment Net present value $ 0 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. FV 0f $1. PVA of S1, and FVA of $) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (118, 000) $ (196,000) Net cash flows in Year 1 44,000 88,500 Year 2 54,500 78,500 Year 3 79,500 68,500 a. Compute each projeci's net present value b. Compute each projek'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 Required Compute each project's profitability index. Profitability Index Numerato Denominator - Profitability Index Profitability index 0 Progea X1 Pro X2 0