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how do i find the present value of net cash flows? Following is information on two alternative investments being considered by Tiger Co. The company

how do i find the present value of net cash flows? image text in transcribed
Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% 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 $(86,000) Project x2 $(132,000) Initial investment Expected net cash flows ini Year 1 Year 2 Year 3 28,000 38,500 63,500 64,500 54,500 44,500 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? 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: Choose Denominator: = Profitability Index Present value of net cash flows Initial investment Profitability index Project X1 $ 25,630$ 86,000 = 0.30 Project X2 $ 12,207 / $ 132,000 = 0.09 if the company can choose only one proiect, which should it choose? Proiect X1

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