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Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 15% return from its investments. (PV of $1,
Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 15% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Net cash flows in: Year 1 Year 2 Year 3 Required A Required B Project X1 $ (84,000) Project X1 27,000 37,500 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 on the basis of profitability index? Project X2 $ (122,000) Complete this question by entering your answers in the tabs below. Net Cash Flows Compute each project's net present value. Note: Round your answers to the nearest whole dollar. 63,000 53,000 43,000 Present Value of Present Value of 1 at 15% Net Cash Flows
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