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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, FV
Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% 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 $(90,000) (140,000) Initial investment Expected net cash flows in year: 30,000 40,500 65,500 67,500 57,500 47,500 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 final answers to the nearest dollar.) t Value c t Cash Present Value Flows of 1 at 4% 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
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