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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

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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 xi $(180,ee) Project x2 $(160,000) Initial investment Expected net cash flows in: Year i Year 2 Year 3 35,eee 45,5ee 79,5ee 75,000 65,00 55,000 a. Compute each project's net present value. b. Compute each 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 Flows Present Value of 1 at 4% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project 2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Required A Required B Compute each project's profitability index. If the company can choose only one project, which should it choose? Profitability Index Choose Numerator: 1 Choose Denominator: Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose? 1

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