15 Exercise 24-11 Net present value, profitability index LO P3 Following is information on two alternative investments being considered by Tiger Co. The company requires a 6% 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.) 10 points Project x1 $(114,000) Project X2 $(188,000) Initial investment Skipped Expected net cash flows in: Year 1 42,000 52,500 77,500 85,500 75,500 65,500 Year 2 Year 3 eBook a. Compute each project's net present value. b. Compute each project's profitability index. If the company can choose only one project, which should it choose? Hint Complete this question by entering your answers in the tabs below. Ask Required B Required A Print Compute each project's net present value. (Round your final answers to the nearest dollar.) Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows References Project X1 Year 1 Year 2 Year 3 Totals Amount invested 2$ Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value 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 Numerator: Choose Denominator: Profitability Index Profitability index Project X1 Project X2 If the company can choose only one project, which should it choose?