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 $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Project x1 $(118,000) Initial investment Expected net cash flows in Year 1 Year 2 Year 3 Project x2 $(196,000) 88,500 78,500 68,500 44,000 54,500 79,500 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 net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows $ 0 $ 0 $ 0 Project X1 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 $ 0 $ 0 $ 0 Required A Required B > Required A Required B Compute each project's profitability index. If the company can choose only one project, which should it choose? TER Profitability Index Choose Numerator: 1 Choose Denominator: 1 Project X1 Project X2 If the company can choose only one project, which should it choose? Profitability Index Profitability Index 0 0