Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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		$	(108,000	)			$	(173,000	)
Expected net cash flows in:
Year 1			44,000					88,500
Year 2			54,500					78,500
Year 3			79,500					68,500

a. Compute each projects net present value. b. Compute each projects profitability index. If the company can choose only one project, which should it choose?

CHwkCh24 15 pts (ignore 25) Saved Help Save & Exit Check my 8 Exercise 24-12 Net present value, profitability index LO P3 Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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.) 3.16 points Project X1 $(108,000) Project X2 $(173,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 44,000 54,500 79,500 88,500 78,500 68,500 eBook Print 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? References 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 8% 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 Amount invested Net present value Check my 00 Exercise 24-12 Net present value, profitability index LO P3 3.16 points Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% 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 $(108,000) Project x2 $(173,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 eBook 44,000 54,500 79,500 88,500 78,500 68,500 Print 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? References 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? 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?