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		$	(98,000	)			$	(156,000	)
Expected net cash flows in:
Year 1			34,000					73,500
Year 2			44,500					63,500
Year 3			69,500					53,500

Compute each projects net present value. (Round your final answers to the nearest 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

ompute each projects profitability index. If the company can choose only one project, which should it choose?

Profitability Index
	Choose Numerator:	/	Choose Denominator:	=	Profitability Index
		/		=	Profitability index
Project X1
Project X2
If the company can choose only one project, which should it choose?