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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 $(86,000) $(132,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 28,000 38,500 63,500 64,500 54,500 44,500 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 Required A B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Present Value of 1 Value of Net at 7% Cash Flows Project X1 Year 1 Year 2 Year 3 $ 28,000 38,500 63,500 $ 130,000 Totals $ 0 $ 0 Amount invested Net present value Project X2 Year 1 Year 2 Year 3 $ 64,500 54,500 44,500 $ 163,500 Totals $ 0 Amount invested Net present value $ 0 Required Required A 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: 1 Project X1 Project X2 If the company can choose only one project, which should it choose? 0 0