Exercise 11-10 (Algo) Net present value, unequal cash flows, and profitability index LO P3 Following is information on two alternative investment projects being conside ed by Tiger Company. The company requires a 7% return from its investments. (PV of $1, EV of $1. PVA of $1. and EVA of $1) (Use epropriate factor(s) from the tables provided.) Initial investment Project X2 $ (212,000) Project X1 $ (126,000) Net cash flows in: Year 1 48,000 94,500 Year 2 Year 3 58,500 84,500 83,500 74,500 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 Le sis of profitability index? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Flows Present Value Present Value of of 1 at 7% Net Cash Flows Project X1 Year 1 48,000 Year 2 58,500 Year 3 83,500 Totals $ 190,000 $ Initial investment Net present value $ Project X2 Year 1 Year 2 Year 3 $ 94,500 84,500 74,500 $ 253,500 Totals Initial investment Net present value 0 $ Required A Required B > Prev 1 of 1 Next Complete this question by entering your answers in the tabs below. Required A Required E Required C Compute each project's profitability index. Profitability Index Numerator: Denominator: Profitability Index Present value of net cash flows Initial investment Profitability index Project X1 $ Project X2 126,000 212,000 = 0.00 0.00