Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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		$	(128,000	)			$	(216,000	)
Expected net cash flows in:
Year 1			49,000					96,000
Year 2			59,500					86,000
Year 3			84,500					76,000

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?

9 Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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.) 2 points Project X1 Project X2 $(128,000) $(216,000) 49,000 96,000 59,500 86,000 84,500 76,000 Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Skipped eBook 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? Hint Complete this question by entering your answers in the tabs below. Print 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 8% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 $ 0 S 0 $ 0 Year 2 Year 3 Totals Amount invested Net present value $ 0 $ 0 $ 0 9 Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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.) 2 points Project X1 $(128,000) Project X2 $(216,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 49,000 Skipped 59,500 84,500 96,000 86,000 76,000 eBook 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? Hint Complete this question by entering your answers in the tabs below. Print Required A Required B Compute each project's profitability index. If the company can choose only one project, which should it choose? = Profitability Index Profitability index Profitability Index Choose Numerator: 1 Choose Denominator: / Project X1 Project X2 If the company can choose only one project, which should it choose? 0 0