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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, FV
Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% 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 | $ | (83,000 | ) | $ | (126,000 | ) | ||||
Expected net cash flows in: | ||||||||||
Year 1 | 31,000 | 69,000 | ||||||||
Year 2 | 41,500 | 59,000 | ||||||||
Year 3 | 66,500 | 49,000 |
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