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Following is information on two alternative investments being considered by Tiger Co. The company requires a 12% 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 12% 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.) Project x1 Project x2 Initial investment $(80,000) $(120,000) Expected net cash flows in Year 1 25,000 60,000 Year 2 35,500 50,000 Year 3 60,500 40.000 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 12% Present Value of Net Cash Flows Project X 1 Your Required A Required B Compute each project's net present value. Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Yeart Year 2 You 3 Totals Amount invested Not present 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 1 Profitability Index Project X1 Project X2 of the company can choose only one project, which should it choose?

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