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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,
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.) Project x1 $ (84, 000) Initial investment Net cash flows in: Project x2 $ (128,eee) Year 1 Year 2 Year 3 27,000 37,500 62,5ee 63,888 53,80 43, eee 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 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 $ Year 2 27,000 37.500 62.500 Year 3 Totals $ 127.000 s 0 $ Initial investment Net present value Project x2 Year 1 $ 83.000 53,000 Year 2 Year 3 43,000 150.000 Totals $ $ 0 Initial investment Net present value s 0 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 Net cash flows in: Project x1 $ (84,00) Project x2 $ (128,eee) Year 1 Year 2 Year 3 27,eee 37,500 62,500 63,000 53,000 43,988 a 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 Compute each project's profitability index. Profitability Index Denominator: Numerator: 1 = Profitability Index Profitability index 0 Project X 1 Project X2 0 Poquired
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