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 EVA of $1) (Use appropriate factor(s) from the tables provided.) Project x Project x2 Initial investment $(88,000) $(136,000) Ixpected net cash flows in years 29,000 66,000 39,500 56,000 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? 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 Present Value of Net Cash Flows Compute each project's net present value. Net Cash Present Value Flow of 1 at 8% Project X 1 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 RO 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 X1 Project 2 of the company can choose only one project, which should it choose?