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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. EV

Following is Information on two alternative Investments being considered by Tiger Co. The company requires a 7% return from its Investments. (PV of $1. EV of $1. PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (95,000) $(152,000) Expected net cash flows in: Year 1 33,000 72,000 Year 2 43,500 62,000 Year 3 68,500 52,000 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 7% Present Value of Net Cash Flows Project X1 Year 1 S 33,000 Year 2 43,500 Year 3 68,500 Totals $145,000 $ 0 Amount invested 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 profitability index. If the company can choose only one project, which should it choose? Profitability Index Choose Numerator: Choose Denominator: Profitability Index. Present value of net cash flows Initial investment Profitability index Project X1 Project X2 0 0 If the company can choose only one project, which should it choose? Project X1

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