Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% 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		$	(124,000	)			$	(208,000	)
Expected net cash flows in:
Year 1			47,000					93,000
Year 2			57,500					83,000
Year 3			82,500					73,000

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?

Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 6% 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 present value Required A Required B 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: Choose Denominator: Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose? Required A Required B