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)

Note: Use appropriate factor(s) from the tables provided.

	Project X1	Project X2
Initial investment	$ (94,000)	$ (148,000)
Net cash flows in:
Year 1	32,000	70,500
Year 2	42,500	60,500
Year 3	67,500	50,500

a Compute each projects net present value.

• Compute each projects profitability index.
• If the company can choose only one project, which should it choose on the basis of profitability index?

Compute each project's net present value. Note: Round your final answers to the nearest dollar. Complete this question by entering your answers in the tabs below. Compute each project's profitability index