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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1,
Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% 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 $ (80,000) $ (120,000) Net cash flows in: Year 1 25,000 60,000 Year 2 35,500 50,000 Year 3 60,500 40,000 a. Compute each projects net present value. b. Compute each projects profitability index.
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