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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a return from its investments (PV of $1. FV

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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a return from its investments (PV of $1. FV of $1. PVA of $1, and FVA of 51) (Use appropriate factor(s) from the tables provided.) Project xa Box Initial investment (90,890) (140,000) Net cash flows in: 30.000 67,500 Year 2 40,500 57,56 Year 3 65,500 47,500 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? Year 1 Complete this question by entering your answers in the tabs below. Required Required B Required Compute each project's not present value. (Round your final answers to the nearest dollar) No Cash Present Value Present Value of Flows ol1 at 4% Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals $ 0 $ Initial investment Net present value $ Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1. FV of $1. PVA of $1. and FVA O 1) (Use appropriate foctor(s) from the tables provided.) Project 1 Initial Investment DEORE X2 $(90,000) 5 (140,000) Net cash flows in Year 1 30.000 67,500 Year 2 40.500 57,50 Year 3 65,500 47,56 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 Compute each project's profitability index. Profitability Index Denominator Numerator Project X1 Project X2 Profitability Index Profitability Index 0 0

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