Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% 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 $(124,000) $(208,000) Expected net cash flows in: Year 1 47, 000 93, 000 Year 2 57, 500 83, 000 Year 3 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? Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Present Present Value Flows Value of 1 of Net Cash at 6% Flows Project X1 Year 1 47,000 0.9430 X $ 44,321 X Year 2 57,500 0.8890 X 51, 178 X Year 3 82,500 0.8390 X 69,218 X Totals $ 187,000 $ 164,717 Amount invested (124,000) Net present 40,717 value Project X2 Year 1 $ 93,000 0.9430 $ 87,699 X Year 2 83,000 0.8890 73,787 X Year 3 73,000 0.8390 61,247 X Totals $ 249,000 $ 222,733 Amount invested (208,000) Net present $ 14,733 value 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 Net sales Annual after-tax net Profitability X X S income index Project $ 164,657 X $ X1 124,000 S 1.33 Project $ $ X2 222,733 X 208,000 V 1.07 If the company can choose only one project, which should it choose?