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please Explain with steps part 1 part 2 Following is Information on two alternative investments projects being considered by Tiger Company. The company requires an
please Explain with steps
Following is Information on two alternative investments projects being considered by Tiger Company. The company requires an 8% return from its investments (PV of $1. FV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Project X1 Project x2 Initial Investment $ (81,600) $(124,600) Net cash flows in: Year 1 29,000 66,000 39,500 56,000 Year 3 46,000 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 on the basis of profitability index? Year 2 54,500 Complete this question by entering your answers in the tabs below. Required A Required B Compute each project's net present value. (Round your answers to the nearest whole dollar) Net Cash Flows Present Value of Present Value of 1 at 8% Net Cash Flows Project X1 Year 1 $ 0 $ 0 $ D Year 2 Year 3 Totals Initial Investment Net present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value $ $ $ 0 Required B > Following is information on two alternative investments projects being considered by Tiger Company. The company requires an 8% return from its investments (PV of $1. FV of S1.PVA of $1. and EVA of S1 (Use appropriate foctor(s) from the tables provided.) Prodect Xi Initial investment Project x2 $ (81,000) Net cash flows in $ (124.000) Year 1 29.000 66,000 Year 2 39,500 56,000 Year 3 64,500 46,000 o. 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 on the basis of profitability index? 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 on the basis of profitability Index? Profitability Index Numerator Denominator Profitability Index 0 Project X 1 Project X2 If the company can choose only on project, which should it choose on the basis of profitability Index? (Required A part 1
part 2
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