Following is information on two alternative investment projects being considered by Tiger Company. The company requires an 8% return from its investments. (PV of $1. FV of $1. PVA of $1. and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project X1 Initial investment $ (88,000) Project X2 $ (136,000) Net cash flows in: Year 1 Year 2 Year 3 29,000 39,500 66,000 56,000 64,500 46,000 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Project X1 Year 1 $ 29,000 0.9259 $ 26,854x Year 2 39,500 0.8573 33,852 Year 3 64,500 0.7938 51,213 Totals $ 133,000 $ 111,919 Initial investment 88,000 Net present $ 23,919 value Project X2 Year 1 $ 66,000 0.9259 $ 61,116 Year 2 56,000 0.8573 47,992 Year 3 46,000 0.7938 36,524 Totals $ 168,000 $ 145,632 Initial investment 136,000 Net present $ 9,632 value Required A Required B Required C Compute each project's profitability index. Numerator: Present value of net cash flows Project X1 S Project X2 S Profitability Index Denominator: Profitability Index Initial investment Profitability index 23,919 $ 88,000 = 0.27 9,632 $ 136,000 0.07 < Required A Required C >