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Following is information on two alternative investment projects being considered by Tiger Company The company regises a 6% return from its investments, (PV of $1.
Following is information on two alternative investment projects being considered by Tiger Company The company regises a 6% return from its investments, (PV of $1. EV of $1. PVA of S1. and EVA of S1) (Use appropriate factor(s) from the tabien provicied.) proviciedis 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? \begin{tabular}{|l|l|l|l|} \hline Project X1 & NetCashFlows & PresentValueof1at6% & PresentValueofNetCashFlows \\ \hline Year 1 & & & \\ \hline Year 2 & & & \\ \hline Year 3 & & & \\ \hline Totals & & & \\ \hline Initial investment & & & \\ \hline Net present value & & & \\ \hline Project X2 & & & \\ \hline Year 1 & & & \\ \hline Year 2 & & & \\ \hline Year 3 & & & \\ \hline Totals & & & \\ \hline Initial investment & & & \\ \hline Net present value & & & \\ \hline \end{tabular} 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
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