4 A machine costs $200,000 and is expected to yield an after-tax net income of $5,000 each year. Management predicts this machine has a 10-year service life and a $40,000 salvage value, and it uses straight-line depreciation. Compute this machine's accounting rate of return. ints Accounting Rate of Return Choose Denominator: Choose Numerator: 1 / 1 Accounting Rate of Return Accounting rate of return 0 eBook Hint Print References Check m! 07 2 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 $(184,000) $(168,000) Expected net cash flows in year: 37,000 78,000 47,500 68,888 3 72,500 58,000 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? Print Complete this question by entering your answers in the tabs below. References Required A Required B Compute each project's net present value. Net Cash Flows Present Value of 1 at 6% Present Value of Net Cash Flows 0 $ 0 $ $ 0 Project X1 Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value 0 $ 0 $ 0 $ Required > 5 2 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 $(104,000) $(168,000) Expected net cash flows in year: 37,000 78,000 2 47,500 68,000 3 72,500 58,000 1 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? Print Complete this question by entering your answers in the tabs below. References 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 Denominator: Choose Numerator: = Profitability Index Profitability index 0 0 Project X1 Project X2 If the company can choose only one project, which should it choose?