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Following is information on two arternauve investments being considered by Tiger Co. ine company requires a % return trom its investments. (PV of $1. FV

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Following is information on two arternauve investments being considered by Tiger Co. ine company requires a % return trom its investments. (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Expected net cash flows in year: Project X1 $ (96,000) 33,eee 43,500 68,500 Project x2 $(152,000) 72,809 62,000 52,eee 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? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Present Value Present Value of Flows of 1 at 79 Net Cash Flows Project X 1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Yeart Year 2 Year 3 Totals Amount invested project, which should it choose? Complete this question by entering your answers in the tabs below. Required A Required 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? 0 0 Required a Following is information on two alternative investments being considered by Tiger Co. The company requires a 8% return from its investments. Project x1 $(128,880) Project X2 $(216,000) Initial investment Expected net cash flows in year: 1 2 3 49, eee 59,500 84,500 96,800 85,000 75,000 Compute the internal rate of return for each of the projects using Excel functions. Based on internal rate of return, indicate whether each project is acceptable. (Round your answers to 2 declmal places.) IRR Acceptable? Project X 1 Project X2 96 96

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