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Please show P-value calculations. Thank you Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from
Please show P-value calculations. Thank you
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 Project x2 Initial investment Expected net cash flows in year: (106,000) (172,000) 38,000 48,500 73,500 79,500 69,500 59,500 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 net present value Net Cash Flows Present Value of1 at7% Present Value of Net Cash Flows Project X1 Year 1 Year 2 Year 3 $38,000 48,500 73,500 Totals 160,000 Amount nvested Net present value 106,000 $ (106,000) Project X2 Year 1 Year 2 $79,500 69,500 59,500 Year 3 Totals 208,500 Amount invested Net present value 172,000 $ 172,000) Required A Required B> 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 Project x2 $ (172,000) Initial investment (106,000) Expected net cash flows in year: 38,000 48,500 73,500 79,500 69,500 59,500 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? Answer is not complete. 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 Profitability Index Profitability index Choose Denominator Choose Numerator: Project X1 Project X2 If the company can choose only one project, which should it choose? Required A Required BStep by Step Solution
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