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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.
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. FV of $1. PVA of $1, and FVA of $i) (Use appropriate factor(s) from the tables provided.) Project Xi Project x2 Initial investment $ (96,000) $ (152,808) Net cash flows in: Year 1 33,000 72.ee Year 2 43,56 62,eee Year 3 68,582 52,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 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 S 0 $ 0 Initial investment Net present value $ 0 Project X2 Year 1 Year 2 Year 3 Totals S 0 $ 0 Initial investment Net present value $ 0 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, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $ (96,089) $ (152,eee) Net cash flows in: Year 1 33,880 72,000 Year 2 43,582 62.ee Year 3 68,580 52.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 Required C Compute each project's profitability index, Profitability Index Denominator: Numerator: Profitability Index Profitability index 0 Project X1 Project X2 0
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