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 a 4% 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 $(100,000) Project x2 $(160,000) Initial investment Expected net cash flow in: Year 1 Year 2 Year 3 35,000 45,500 70,500 75,000 65,000 55,000 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 Pronant Value Present Value of Flows of 1 at 4% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals $ 0 $ Amount invested Net present value $ Project X2 Year 1 Year 2 0 O 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.) Not Cash Flows Present Value of 1 at 4% Present Value of Not Cash Flows $ 0 $ 0 Project X1 Year 1 Year 2 Year 3 Totais Amount invented Not present value Project X2 Year 1 Year 2 Year 3 Totals $ 0 $ 0 $ 0 Amount invested Net present value $ 0 Required B >