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exercise 26-13. Thanks! Exercise 26-11 Net present value, profitability index P3 Following is information on two alternative investments being considered by Tiger Co. The company

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exercise 26-13. Thanks!
Exercise 26-11 Net present value, profitability index P3 Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. Project X1 Project X2 $(80,000) $120,000) Expected net cash flows: Year 1 25,000 60,000 Year 2 35,500 50,000 Year 3 60,500 40,000 Initial investment Q Compute each project's (a) net present value and (b) profitability index. (Round present value calculations to the nearest dollar and round the profitability index to two decimal places.) If the company can choose only one project, which should it choose? Exercise 26-12 Net present value, profitability index P3 Refer to the information in Exercise 26-11 and instead assume the company requires a 12% return on its investments. Compute each project's (a) net present value and (b) profitability index. (Round present value calculations to the nearest dollar.) Express the profitability index as a percentage (rounded to two decimal places). If the company can choose only one project, which should it choose? Page 1013 Exercise 26-13A Internal rate of return P4 Refer to the information in Exercise 26-11. Create an Excel spreadsheet to computethe internal rate of return for each of the projects. Based on internal rate of return, determine whether the company should accept either of the two projects

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