Question: two part question, please answer both. thank you. Following is information on two alternative investments being considered by Tiger Co. The company requires a 15%


Following is information on two alternative investments being considered by Tiger Co. The company requires a 15% return from its Investments. (PV of $1. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 $(114,000) Project X2 $(171,000) Initial investment Expected net cash flows in: Year 1 42,000 85,500 Year 2 52,500 75,500 Year 3 77,500 65,500 a. Compute each project's net present value. es 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 answers to the nearest whole dollar.) Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows Project X1 Year 1 $ 42.000 0.8700 Year 2 52,500 Year 3 77,500 Totals $ 172,000 0 $ 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 answers to the nearest whole dollar.) Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows Project X1 Year 1 $ 42,000 0.8700 Year 2 52,500 77,500 Year 3. Totals $ 172,000 0 Amount invested Net present value 0 Project X2 Year 1 Year 2 Year 3 Totals 0 Amount invested $ $ $ $ 0 77,500 65,500 Year 3 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 profitability index. If the company can choose only one project, which should it choose? Profitability Index Choose Numerator: Choose Denominator: Profitability Index Profitability index Project X1 0 Project X2 0 If the company can choose only one project, which should it choose?
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