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Following is Information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments. (PV of $1.

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Following is Information on two alternative investment projects being considered by Tiger Company. The company requires a 7% return from its investments. (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate foctor(s) from the tables provided.) Initial investment Net cash flows in: Project x1 $ (125,000) Project x2 $ (212,000) Year 1 Year 2 Year 3 48,000 58,500 83,500 94,500 84,500 74,500 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? 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 7% Present Value of Net Cash Flows Project Xt Year 1 Year 2 Year Required A Required B Required C 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 7% 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> 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 Compute each project's profitability index. Profitability Index Denominator: Numerator: Profitability Index Profitability index Project X1 Project X2 3. 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 If the company can choose only one project, which should it choose on the basis of profitability Index? It the company can choose only one project, which should it choose on the basis of profitability index?

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