Following is information on two alternative investments being considered by Tiger Co. 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
Initial investment		$	(130,000	)			$	(220,000	)
Expected net cash flows in year:
1			50,000					97,500
2			60,500					87,500
3			85,500					77,500

a. Compute each projects net present value. b. Compute each projects profitability index. If the company can choose only one project, which should it choose?