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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 $i (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $ (114,000) $ (188,000) Net cash flows in: Year 1 42,000 85,500 Year 2 52,500 75,500 Year 3 77,500 65,500 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 Present Value Present Value of Flows of 1 at 6% Net Cash Flows Project X 1 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 >
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