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Following is Information on two alternative investments being considered by Tiger Co. The company requires a 10% return from its Investments. (PV of $1.
Following is Information on two alternative investments being considered by Tiger Co. The company requires a 10% return from its Investments. (PV of $1. EV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in: Year 1 Year 21 Year 3 Project X1 Project X2 $(124,000) $(191,000) 47,000 93,000 57,500 83,000 82,500 73,000 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 answers to the nearest whole dollar.) Not Cash Flows Present Value of 1 at 10% Present Value of Net Cash Flows Project X1 Year 1 $ 47,000 Year 2 57,500 0.9091 $ 0.8264 42,727 47,518
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