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please assist i am stuckv Return to question Following is information on two alternative investments being considered by Tiger Co. The company requires a 12%
please assist i am stuckv
Return to question Following is information on two alternative investments being considered by Tiger Co. The company requires a 12% return from its investments. (PV of St. FV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment $(80,000) $(120,000) Expected net cash flows in year 25,000 60,000 35,500 50,000 3 60,500 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Return to question Compute each project's net present value. Net Cash Flows Present Value of 1 at 12% Present Value of Net Cash Flows $ 25,000 35,500 60,500 $ 121,000 0.9615 $ 0.9246 X 0.8890 X is 24,038 X 32.823 53,785 110,646 80,000 S 30,646 Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value $ $ 60,000 50,000 40,000 $ 150,000 OOO 0.9615 0.9246 0.8890 57.690 46 230 X 35,560 X 139,480 120,000 19,480 $ Return to question 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 Profitability Choose Numerator: Denominator: Index Present value of net cash Profitability Initial investment flows index Project $ X1 110,645 $ 80,000 1.38 Project S $ 139,4801 120,000 X2 1.16 if the company can choose only one project, which should it choose? Project X1 = > Step by Step Solution
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