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Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its Investments. (PV of $1, FV
Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its Investments. (PV of $1, FV of $i, PVA of $i, and EVA of $1 (Use appropriate factoris) from the tables provided.) Project x1 Project x2 Initial investment $1125, 0001 5(212,00) Expected net ca flow YA 1 48,000 94,500 YA 2 50, 500 84.500 Yes 3 E3,500 74,500 a. Compute cach project's not present value. b. Compute cach project's profitability Index. If the company can choose only one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Present Value Present Value of Flows of 1 at 756 Net Cash Flows Project 1 Yeart Year 2 Year 3 Totais $ c 5 Amount invested Net present value 5 Project 2 Year 1 Year 2 Year 3 Totals $ O 5 Amount invested Net present value 5 Required Required B > Following is Information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments. PV of $1, FV of $1, PVA of $1, and EVA of $1 (Use appropriate factoris) from the tables provided.) Project x1 Project X Initial investment $125,000 5(212,00) Expected nut ca flow in Year 1 41.000 94,500 Tue 2 53.500 84,500 > 33,500 74,500 a. Compute cach project's not present value. b. Compute cach project's profitability Index. If the company can choose only one project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required Compute each project's profitability index. If the company can choose only one project, which should it choose? Profitability Index Choose Numerator; Choose Denominator = Profitability Index Profitability index Project X 1 0 Project X2 0 If the company can choose only one project, which should it choose?
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