Question: Help me to compute each project's net present value. Help me to compute each project's profitability index. if the company can choose only one project,
Help me to compute each project's net present value. Help me to compute each project's profitability index. if the company can choose only one project, which should it choose?

1 Homework i Check my Following is information on two alternative investments being considered by Tiger Co. The company requires a 7% return from its investments. (PV of $1, FV of $1, PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (86, 000) $ (132, 000) Expected net cash flows in: Year 1 28, 000 64, 500 Year 2 38, 500 54, 500 Year 3 63,50 44, 500 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? Complete this question by entering your answers in the tabs below. Required A Required B 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 7% Net Cash Flows Project X1 Year 1 $ (86,000) Year 2 28,000 Year 3 38,500 Totals (19,500) Amount invested Net present value Project X2 Year Year 2 Year 3 Totals $ $ Amount invested Net present value $ 0 Required A Required B >
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