Following is information on two alternative investments being considered by Tiger Co. The company requires a 9% 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		$	(80,000	)			$	(123,000	)
Expected net cash flows in:
Year 1			28,000					64,500
Year 2			38,500					54,500
Year 3			63,500					44,500

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?