Question a

Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5% 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 $ (82,898] $ (124,898) Net cash Flows in: Year 1 26,999 61,599 Year 2 36,599 51,599 Year 3 61,599 41,599 9. Compute each project's net present value. b. Compute each project's profitability index. c. 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 Required C Compute each project's net present value. [Round your final answers to the nearest dollar.) __ Totals 124 000 Initial investment Net present value Project X2 5 Totals 154 500 Initial investment Net present value Required B >