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Following is information on two alternative investments being considered by Tiger Co. The company requires a 9% return from its investments. (PV of $1, FV
Following is information on two alternative investments being considered by Tiger Co. The company requires a 9% 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 $ (80,000) Project x2 $(123,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 28,000 38,500 63,500 64,500 54,500 44,500 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.) Required A Required B Compute each project's net present value. (Round your answers to the nearest whole dollar.) Net Cash Present Value Present Value of Flows of 1 at 9% 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 Amount invested Net 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 Denominator: Choose Numerator: Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose
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