Exercise 24-11 Net present value, profitability index LO P3 Following is information on two alternative Investments being considered by Tiger Co. The company requires an 8% return from its Investments. (PV of $1. FV of $1. PVA of S1, and EVA of $19 (Use appropriate factor(s) from the tables provided.) Project X Project x2 Initiat investment 5(88,000) $1136,000) Expected net cash flows in Year 1 29,000 66,000 Year 2 39,500 56,000 Year 3 64,500 46.000 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 Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value Present Value of of 1st Net Cash Flows Project X1 Yoart Year 2 Year Total Amount invested Net recent 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 Prosent Value Present Value of Flows of 1 at 8% Not Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Amount invested Not present value Project 2 Year 1 Year 2 Year 3 Totals Amount invested Net prosent value New Required B > 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 1 Project X2 If the company can choose only one project, which should it choose?