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.) Initial investment Project X1 $ (84,000) Project X2 $ (128,000) Net cash flows in: Year 1 27,000 63,000 Year 2 37,500 53,000 Year 3 62,500 43,000 a. Compute each project's net present value. b. Compute each project's profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows Project X1 Year 1 $ 27,000 0.9434 $ 25,461 Year 2 37,500 0.8900 33,375 Year 3 62,500 0.8396 52,601 Totals $ 127,000 $ 111,437 Initial investment Net present value $ 111,437 Project X2 Year 1 Year 2 Year 3 Totals $ 78,000 0.9434 $ 73,585 68,000 0.8900 60,520 58,000 0.8396 48,697 $ 204,000 $ 182,802 Initial investment Net present value $ 182,802 < Required A Required B > Compute each project's profitability index. Project X1 Project X2 Profitability Index Numerator: I Denominator: = Profitability Index 1 = Profitability index 0 0 < Required A Required C