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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
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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Project Xi $ (116,000) Project X2 $ (192,000) Net cash flows in: Year 1 43,000 87,000 Year 2 53,500 77,000 Year 3 78,500 67,000 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) Present Value of Net Cash Flows Present Value of 1 at 7% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals $ 0 $ Initial investment Not present value- Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value $ $ $ Dress
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