3 Exercise 24-12 Net present value, profitability index LO P3 5 points 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.) Project x1 Project x2 Initial investment $(114,000) $(188,000) Expected net cash flows in year: 42,000 85,500 52,500 75,500 77,500 65,500 1 eBook 2 3 Print References 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. Compute each project's net present value. eBook Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows Print Project X1 Year 1 References Year 2 Year 3 Totals 0 0 Amount invested 0 Net present value Project X2 Year 1 Year 2 Year 3 Totals $ 0 0 Amount invested Net present value 0