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Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% return from its Investments (PV of $1.
Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% 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 11 Year 2 Year 3 Project X1 Project X2 $(104,000) $(168,000) 37,000 78,000 47,500 68,000 72,500 58,000 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 11 Year 2 Year 3 Totals Amount invested i Net present value Project X2 Year 1 Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows
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