Exam $4-$ Comprehensive $($Chapters $14-15,17-18,20-...$

Saved

Help

Save & Exit

Submit

$32$

Required A

Required B

Required C

Compute each project's net present value. $($Round your final answers to the nearest dollar.$)$

$9$

points

$02$:$24$:$52$

$\backslash$table$[[,\backslash$table$[[$Net Cash$],[$Flows$]],\backslash$table$[[$Present Value$],[$of $1$ at $7\%]],\backslash$table$[[$Present Value of$],[$Net Cash Flows$]]],[$Project X$1,,,],[$Year $1,,,],[$Year $2,,,],[$Year $3,,,],[$Totals$,,,],[$Initial investment,,,$],[$Net present value,,,$],[$Project X$2,,,],[$Year $1,,,],[$Year $2,,,],[$Year $3,,,],[$Totals$,,,],[$Initial investment,,,$],[$Net present value,,,$]]$

Required A

Required B

Mc

Graw

Prev.

$32$ of $32$

Next Exam $4-$ Comprehensive $($Chapters $14-15,17-18,20-..$

Saved

Help

Save & Exit

Submit

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?

$32$

Complete this question by entering your answers in the tabs below.

$9$

Required $A$

Required $B$

Required $C$

points

$02$:$24$:$20$

Compute each project's profitability index.

$\backslash$table$[[$Profitability Index,$],[$Numerator:$,$I,Denominator:,$=,$Profitability Index,$],[,,/,,=,$Profitability index$],[$Project X$1,,,,,],[$Project X$2,,,,,]]$

Required A

Required C

Mc

Graw

Prev.

$32$ of $32$

Next Exam $4-$ Comprehensive $($Chapters $14-15,17-18,20-...$

Saved

Help

Save & Exit

Submit

Year $3$

$6\frac{O}{,}b06$

$52,000$

$32$

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?

$9$

Complete this question by entering your answers in the tabs below.

points

$02$:$24$:$01$

Required $A$

Required $B$

Required C

If the company can choose only one project, which should it choose on the basis of profitability index?

If the company can choose only one project, which should it choose on the basis of profitability index?

Required B

Required $C$

Mc

Graw

Prev.

$32$ of $32$

NextFollowing is information on two alternative investment projects being considered by Tiger Company. The company requires a $7\%$ 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 X$1$ Project X$2$

Initial investment $ $(96,000)$ $ $(152,000)$

Net cash flows in:

Year $133,00072,000$

Year $243,50062,000$

Year $368,50052,000$

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?