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Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. (PV of $1. EV

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Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate foctor(s) from the tables provided.) Project x1 Project x2 Initial investment Expected net cash flows in year: $(110,000) $(180,000) 40,000 82,500 50,500 72,500 75,500 62,500 o. 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 not present value Net Cash Flows Present Value of 1 at 4% Present Value of Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals Amount invested $ 0 $ 0 Not recent van S Net Cash Flows Present Value of 1 at 4% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 $ $ Totals Amount invested $ 0 Net present value Project X2 Year 1 Year 2 $ 0 $ 0 Year 3 Totals Amount invested Net present value $ Required A Required A Required B Compute each project's profitability index. If the company can choose only one project, which Choose Numerator: Profitability Index | Choose Denominator: Profitability Index Profitability index Project X 1 Project X2 If the company can choose only one project, which should it choose? 0 0

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