Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1Project X2Initial investment$ (102,000)$ (164,000)Net cash flows in: Year 136,00076,500Year 246,50066,500Year 371,50056,500 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?Please answer "C" as well. I wasn't able to include that in the images Complete this question by entering your answers in the tabs below.Required ARequired BRequired CCompute each project's net present value. (Round your final answers to the nearest dollar.)Present Valueof 1 at 5%Present Value ofNet Cash FlowsNet CashFlowsProject X1Year 1Year 2Year 3TotalsInitial investmentNet present valueProject X2Year 1Year 2Year 3TotalsInitial investmentNet present value< Required ARequired B > Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5%return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)Project X1$ (102,000)Project X2$ (164, 000)Initial investmentNet cash flows in:76,50066,50056,500Year 1Year 2Year 336,00046,50071,500a. 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?Complete this question by entering your answers in the tabs below.Required ARequired BRequired CCompute each project's profitability index.Profitability IndexNumerator:Denominator:Profitability IndexProfitability indexProject X1Project X2

Net present value is difference between the present value of cash flow and initial investment. It…

Answered: wing is information on two alternative…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5% return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

	Project X1	Project X2
Initial investment	$ (102,000)	$ (164,000)
Net cash flows in:
Year 1	36,000	76,500
Year 2	46,500	66,500
Year 3	71,500	56,500

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?

Please answer "C" as well. I wasn't able to include that in the images

Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Compute each project's net present value. (Round your final answers to the nearest dollar.)
Present Value
of 1 at 5%
Present Value of
Net Cash Flows
Net Cash
Flows
Project X1
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
Project X2
Year 1
Year 2
Year 3
Totals
Initial investment
Net present value
< Required A
Required B >

Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5%
return from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)
Project X1
$ (102,000)
Project X2
$ (164, 000)
Initial investment
Net cash flows in:
76,500
66,500
56,500
Year 1
Year 2
Year 3
36,000
46,500
71,500
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?
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
Numerator:
Denominator:
Profitability Index
Profitability index
Project X1
Project X2

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