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Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% return from its investments. (PV of $1,
Following is information on two alternative investments being considered by Tiger Co. The company requires a 5% 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.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Project X1 $ (112,000) Project X2 $ (184,000) 41,000 84,000 51,500 74,000 76,500 64,000 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.) Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Net Cash Flows Present Value of 1 at 5% Present Value of Net Cash Flows Required A Required B >
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