Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% 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		$	(92,000	)			$	(144,000	)
Expected net cash flows in year:
1			31,000					69,000
2			41,500					59,000
3			66,500					49,000

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?