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 of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 $ (140,000) (90,000) 30,000 67,500 Initial investment Net cash flows in: Year 1 Year 2 Year 3 40,500 57,500 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? Complete this question by entering your answers in the tabs below. Required Required Required A B C Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Present Value of 1 Value of Net at 4% Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 Totals 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 of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 $ $ (90,000) (140,000) 30,000 67,500 Initial investment Net cash flows in: Year 1 Year 2 Year 3 40,500 57,500 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? Complete this question by entering your answers in the tabs below. Required Required Required A B Compute each project's profitability index. Profitability Index Numerator: 1 Denominator: = Profitability Index Profitability index 1 Project X1 Project X2 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 of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 $ $ (90,000) (140,000) 30,000 67,500 Initial investment Net cash flows in: Year 1 Year 2 Year 3 40,500 57,500 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? Complete this question by entering your answers in the tabs below. Required Required Required A B If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index?
