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Following is information on two alternative investments being considered by Tiger Co. The company requires a 5 % return from its investments. (PV of $1,
Following is information on two alternative investments being considered by Tiger Co. The company requires a 5 % 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 102,000 1164,00) Initial investment Expected net cash flows in year 36.000 46,500 71,500 76,500 66,500 56,500 3 a. Compute each projects net present value. b. Compute each project's 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 Present Value of 1 at 5% Present Value of Net Cash Flows Flows Project X1 Year Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value Required A Required B Compute each project's profitability index. If the company can choose only one project, which sho uld 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
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