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Following is information on two alternative Investment projects being considered by Tiger Company. The company requires a 5% return from its investments. (PV of $1.
Following is information on two alternative Investment projects being considered by Tiger Company. The company requires a 5% return from its investments. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Net cash flows in:- Year 1 Year 2 Year 31 Project X1 $ (122,000) Project X2 $ (204,000) 46,000 91,500 56,500 81,500 81,500 71,500 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? a. Compute each projects 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.) Project X1 Year 1 Year 2 Year 3 Totals Initial investment Not present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows Present Value of 1 at 5% Present Value of Net Cash Flows 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 profitability index. Project X1 Project X2 Numerator: Profitability Index Denominator: Profitability Index = 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 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
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