Question: 11 Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. (PV of


11 Following is information on two alternative investments being considered by Tiger Co. The company requires a 4% return from its investments. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) 56 ints Initial investment Expected net cash flows in year: 1 eBook 3 Project X1 $(80,000) Project x2 $(120,000) 25,000 60,000 35,500 50,000 60,500 40,000 Hint Print a. Compute each project's net present value. References 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. Net Cash Flows Present Value of 1 at 4% Present Value of Net Cash Flows Project X1 11 Compute each project's net present value. Net Cash Flows 0.66 points Year 11 Present Value of 1 at 4% Present Value of Net Cash Flows Project X11 $ 25,000 0.9621 $ 24,050 Year 2 35,500 0.9251 32,838 Year 3. 60,500 0.8890 53,785 Totals $ 121,000 $ 110,673 Amount invested 30,672 Net present $ 80,001 value. Project X2 Year 1 $ 60,000 0.9621 $ 57,720x Year 2 50,000 0.9251 46,250 Year 3 40,000 0.8890 35,560 Totals $ 150,000 $ 139,530 Amount invested 19.530 Net present IS 120.000 bloxt Return to questio 11 Required A Required B 0.66 points Compute each project's profitability index. If the company can choose only one project, which should it choose? Project X1 Project X2 Choose Numerator: Profitability Index Choose Denominator: If the company can choose only one project, which should it choose? Profitability Index Profitability index 0 0 < Required A Required B Retur
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