Following is information on two alternative investment projects being considered by Tiger Company. The company requires an 8% return from its investments.

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?

InitialinvestmentNetcashflowsin:Year1Year2Year3ProjectX1$(88,000)29,00039,50064,500ProjectX2$(136,000)66,00056,00046,000 Complete this question by entering your answers in the tabs below. Compute each project's profitability index