Following is information in two alternative investments. The company requires an 8% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1).

Project xi $(98,000) Project x2 $(156,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 34,000 44,500 69,500 73,500 63,500 53,500 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? Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows I TO | 0 $ $ $ 0 Project X1 Year 1 D Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value lo $ 0 $ / 1777 / s Required A Required B > 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 Denominator: Choose Numerator: = = Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose?