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I REALLY NEED HELP WITH THE ONES THAT ARE CHECK MARKED RED. I HAVE LOOKED UP THE SAME QUESTIONS ON CHEGG AND KEEP GETTING THE
I REALLY NEED HELP WITH THE ONES THAT ARE CHECK MARKED "RED". I HAVE LOOKED UP THE SAME QUESTIONS ON CHEGG AND KEEP GETTING THE TWO WRONG. THANK YOU
Following is information on two alternative investments being considered by Tiger Co. The company requires a 12% 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 $(80,000) Project x2 $ (120,000) Initial investment Expected net cash flows in: Year 1 Year 2 Year 3 25,000 35,500 60,500 60,000 50,000 40,000 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? Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. Compute each project's net present value. Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Project X1 Year 1 $ 0.8929 $ Year 2 0.7972 25,000 35,500 60,500 121,000 Year 3 0.7118 22,322 28,300 43,063 93,685 (80,000) 13,685 Totals $ Amount invested $ Net present value Project X2 Year 1 $ 0.8929 60,000 50,000 Year 2 0.7972 Year 3 0.7118 40,000 150,000 53,570 39,860 28,471 121,901 (120,000) 1,901 Totals $ $ Amount invested Net present value $Step by Step Solution
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