Following is information on two alternative investments being considered by Tiger Co. The company requires a 12% 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		$	(110,000	)			$	(169,000	)
Expected net cash flows in:
Year 1			40,000					82,500
Year 2			50,500					72,500
Year 3			75,500					62,500

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?

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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, FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 $(110,000) Project X2 $(169, 000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 40,000 50,500 75,500 82,500 72,500 62,500 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? X Answer is not complete. 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 12% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 $ 40,000 50,500 75,500 0.9615 X $ 0.9246 X 0.8890 X 38,460 X 46,692 67,120 X Totals $ 166,000 152,272 110,000 $ 42.272 Amount invested Net present value Project X2 Year 1 Year 2 Year 3 $ 79,327 X $ 82,500 72,500 62,500 0.9615 0.9246 0.8890 67,030 X 55,562 $ 217,500 201,919 Totals Amount invested Net present value 180,000 $ 21,919 Following is information on two alternative investments being considered by Tiger Co. The company requires a 12% 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 $(110,000) Project X2 $(169,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 40,000 50,500 75,500 82,500 72,500 62,500 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? Answer is not complete. 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 Numerator: 1 Choose Denominator: Profitability Index Profitability index Initial investment = 110,000 > > X = Project $ 152,271 X/ $ X1 Project $ 201,920 1 $ X2 If the company can choose only one project, which should it choose? 1.38 180,000 X 1.12 Project X1