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 12% 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 bet cash love in year Project x1 $(80,000) Project 2 $120,000) 25,000 35,500 60,500 60.000 50,000 40,000 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 B Compute each project's net present value. Net Cash Flows Present Value of 1 at 12% Prosent Value of Net Cash Flows Project X 1 Year 1 Required A Required B Compute each project's net present value. Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows 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 Required B > 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 Profitability index Profitability Index Choose Numerator: Choose Denominator: 1 Project X1 Project X2 If the company can choose only one project, which should it choose?