Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 6% 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	$ (114,000)	$ (188,000)
Net cash flows in:
Year 1	42,000	85,500
Year 2	52,500	75,500
Year 3	77,500	65,500

a. Compute each projects net present value. b. Compute each projects profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index?

Required a Required B Required Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Present Value Present Value of Flows of 1 at 6% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Required A Required B > Jumuired A Required B Required C Compute each project's profitability index. Profitability Index Numerator: 1 Denominator: Profitability Index Profitability index 11 Project X 1 Project X2 Required A Required B Required If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index?