#3 Need help fixing

Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 12% 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.) Initial investment Net cash flows in: Project X1 $ (88,000) Project X2 $ (120,000) Year 1 Year 2 Year 3 25, 35,500 68,500 60,000 50,000 40,000 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 on the basis of profitability index? Answer is complete but not entirely correct. Compute each project's net present value. Net Qash Flows Present Value of 1 at 12% Present Value of Net Cash Flows Project X1 Year 1 $ 0.8929 $ 22,328 Year 2 0.7972 28,301 25,000 35,500 60,500 121.000 Year 3 0.7118 43,064 Totals $ $ 93.688 Initial investment (80,000) 13,688 $ Net present value Project X2 Year 1 CA 60,000 0.8929 $ 53,574 Year 2 0.7972 39,860 50,000 40,000 150,000 Year 3 0.7118 28,472 0 $ Totals $ 121,906 (120,000) 1,906 Initial investment $ Net present value Return to question Required A Required B Compute each project's profitability index. If the company can choose only one project, which should it choose on the basis of profitability inde: Profitability Index Numerator: Denominator: Present value of net cash flows Initial investment Profitability index 80,000 1.17 Project X1 $ 93,687 X $ Project X2 S 121,906 7 $ If the company can choose only one project, which should it choose on the basis of profitability index? 120,000 1.02 Project X1