Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I don't why am getting Project X1 X2 wrong..please can you help but required A everything is fine TUI. Il uues UL indicate completion. Retu

image text in transcribed

I don't why am getting Project X1 X2 wrong..please can you help but required A everything is fine

image text in transcribed

TUI. Il uues UL indicate completion. Retu 5 2 points 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 S1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project X1 Project x2 Initial investment $(104,800) $(168,000) Expected net cash flows in year: 1 37,000 78,000 2 47,500 68,000 3 72,500 58,000 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? Answer is complete but not entirely correct. 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 oose Numerator: Denominator: Present value of net cash flows Initial investment Project X1 $ 34,053 S 104,000 Project $ X2 14,803 X X $ 168,000 If the company can choose only one project, which should it choose? Profitability Index Profitability Index 0.33 0.09 Project X1 (Required A 5 2 points 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 S1. PVA of $1. and FVA of S1) (Use appropriate factor(s) from the tables provided.) Project x1 Initial investment Project x2 $(164,000 $(168,000) Expected net cash flows in year: 37, 78,600 47,500 68.ee 72,5e 58, cee eBook 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? Print Complete this question by entering your answers in the tabs below. References Required A Required B Compute each project's net present value. Net Cash Present Value Present Value of Flows of 1 at 6% Net Cash Flows $ $ 37,000 47,500 72,500 $ 157,000 0.9434 0.8900 0.8396 Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals 34,906 42.275 60.8721 138,053 (104,000 34.053 $ $ 0.9434 $ $ 78,000 68,000 58,000 $ 204,000 0.8900 0.8396 73,585 60,520 48,698 182,803 (168,000) 14803 S Amount invested Net present value S Required B >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Software Audit Guide

Authors: John W. Helgeson

1st Edition

0873897730, 978-0873897730

More Books

Students also viewed these Accounting questions

Question

explain the need for human resource strategies in organisations

Answered: 1 week ago

Question

describe the stages involved in human resource planning

Answered: 1 week ago