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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

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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. EV 0f $1. PVA of S1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Project 1 Project Initial Investment 3 (84,000) $(128,000) Expected net cash flows in years 63,000 37,500 53,000 62,500 43,000 o. 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 not present value Net Cash Present Value Flows of 1 at 6 Present Value of Net Cash Flow Required A Required B Compute each project's net present value. Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 27 $ 0 S 0 ces 21 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value $ $ 0 $ $ 0 Required B 2 Summer 2021 Chapters 19 to 24 Savod Complete this question by entering your answers in the tabs below. 2 Required A Required B 3.25-17 Compute each project's profitability index. If the company can choose only one project, which should it cho Profitability Index Choose Numerator: Choose Denominator: Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should fi choose? sook 0 rences

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