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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 Project X2
Initial investment $ (124,000) $ (208,000)
Net cash flows in:
Year 1 47,000 93,000
Year 2 57,500 83,000
Year 3 82,500 73,000

a. Compute each projects net present value. b. Compute each projects profitability index. c. If the company can choose only one project, which should it choose on the basis of profitability index? image text in transcribedimage text in transcribed

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.) 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. Compute each project's profitability index. 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. Compute each project's net present value. (Round your final answers to the nearest dollar.)

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