Exercise 24-12 Net present value, profitability Index LO P3 Following is Information on two sternative Investments being considered by Tiger Co. The company requires a 65 return from its Investments. PV of $1, FV of $1, PVA of $1, and FVA of $ (Use appropriate factor(s) from the tables provided) Project xa Project Initial Investment $(114,00) $(188,eee) Expected net cash flows in year: 85,500 52,00 75,500 3 77,50 65,500 a. Compute esch project's net present value. b. Compute esch 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 Poquired Compute each project's not present value. Net Cach Procent Value Present Value of Flows of 1 at 6% Nat Cash Flows $ 0 $ $ Project X1 Yeart Year 2 Yaara Totals Amount invested Not present value Project x2 Year 1 Year 2 Yaara Totals Amount invested Not presenta $ $ (Required A Required B > 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 a 6% 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 Project X2 Initial investment $(114, eee) $(188,888) Expected net cash flows in year: 85,588 52,500 75,500 1 42,eee 3 77,500 65,5ee 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 1 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 X 1 Project X2 If the company can choose only one project, which should it choose? 1 0 0