Exercise 24-12 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.) Initial investment Expected net cash flows in year: 1 2 3 Project X1 $ (98,000) Project X2 $ (156,000) 34,000 44,500 73,500 63,500 69,500 53,500 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. Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Project X1 Year 1 $ 34,000 Year 2 44,500 Year 3 69,500 Required A Required B Compute each project's net present value. Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Project X1 Year 1 $ 34,000 Year 2 44,500 Year 3 69,500 Totals $ 148,000 $ 0 Amount invested Net present value $ 0 Project X2 Year 1 $ 73,500 Year 2 Year 3 63,500 53,500 Totals $ 190,500 Amount invested Net present value $ 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? Project X1 Project X2 Profitability Index Choose Numerator: Choose Denominator: = Profitability Index = Profitability index 0 0 If the company can choose only one project, which should it choose?