Exercise 24-10 (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 an 8% return from its investments. (PV of S1, EV of $1. PVA of $1, and EVA of S1) (Use appropriate factor(s) from the tables provided.) Initial investment Project X1 $ (98,000) Project X2 $ (156,000) Net cash flows in: Year 1 34,000 73,500 Year 2 44,500 63,500 Year 3 69,500 53,500 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? Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's profitability index. Profitability Index Profitability Profitability Index Numerator: Present value of net cash flows Denominator Initial investment Project X1 135,622 O 96.000 Project 176.944 O X2 $ 156,000 index 136 >