Exercise 11-10 (Algo) Net present value, unequal cash flows, and profitability index LO P3 Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments (PV of $1. EV of $1. PVA of $1. and EVA of $1) (Use appropriate foctor(s) from the tables provided.) Project x1 Project x2 Initial Investnent $ (110,000 $ (180,000) Net cash flows in: Year 1 40,000 62,500 Year 2 50,500 72,500 75,500 62,500 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 basis of profitability index? Year Chec Required A Required B Required Compute each project's net present value. (Round your final answers to the nearest dollar) Net Cash Present Value Present Value of Flows of 1 at 4% Net Cash Flows Project X1 Year 1 Year 2 Year 3 Totals Initial investment Nel present value Project X2 Year 1 Year 2 Year 3 Totals Initial Investment Not present value Required B Complete this quesvion by entering your answers in the tabs below. Required A Required Required Compute each project's profitability index. Profitability Index Numerator: Denominator: Profitability Index Profitability index Project X1 Project X2 Complete this question by entering your answers in the tabs below. Required A Required B Required 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?