Following is information on two alternative investment projects being considered by Tiger Company. The company requires...

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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Project X1 $ (80,000) Project X2 $ (120,000) Net cash flows in: Year 1 25,000 60,000 Year 2 35,500 50,000 Year 3 60,500 40,000 a. 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. Project X1 Year 11 Year 2 Year 3 Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows 1 at 4% Present Value of Present Value of Net Cash Flows Required 8 > Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments. (PV of $1. FV of $1. PVA of $1, and EVA of $1) Note: Use appropriate factor(s) from the tables provided. Initial investment Project X1 $ (80,000) Project X2 $ (120,000) Net cash flows in: Year 1 25,000 60,000 Year 2 35,500 50,000 Year 3 60,500 40,000 a. 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. Project X1 Year 11 Year 2 Year 3 Totals Initial investment Net present value Project X2 Year 1 Year 2 Year 3 Totals Initial investment Net present value Net Cash Flows 1 at 4% Present Value of Present Value of Net Cash Flows Required 8 >

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To compute each projects net present value NPV we need to discount the net cash flows of each projec... View the full answer