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Following is information on two alternative Investments being considered by Tiger Co. The company requires a 15% return from its Investments. (PV of $1. EV

Following is information on two alternative Investments being considered by Tiger Co. The company requires a 15% return from its Investments. (PV of $1. EV of $1. PVA of $1. and EVA of $) (Use appropriate factor(s) from the tables provided.) Initial Investment Expected net cash flows in: Year 1 Year 2 Year 3 Project X1 Project X2 $(114,000) $(171,000) 42,000 85,500 52,500 75,500 77,500 65,500 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.) Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals $ $ Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals S $ O S Following is information on two alternative Investments being considered by Tiger Co. The company requires a 15% return from its Investments. (PY of $1. EV of $1 PVA of $1. and EVA of S1) (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 Project XI $(114,000) Project X2 $(171,000) 42,000 85,500 52,500 75,500 77,500 65,500 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? Choose Numerator: Project X1 Project X2 Profitability index Choose Denominator: Profitability index = Profitability index 0 0 If the company can choose only one project, which should it choose? image text in transcribed

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