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)$

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

Project X$1$ Project X$2$

Initial investment $ $(86,000)$ $ $(132,000)$

Net cash flows in:

Year $128,00064,500$

Year $238,50054,500$

Year $363,50044,500$

Compute each project$$s net present value.

Compute each project$$s profitability index.

If the company can choose only one project, which should it choose on the basis of profitability index?