Following is information on two alternative investment projects being considered by Tiger Company. The company...
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Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 4% return from its investments (PV of $1. FV of $1. PVA of S1, and EVA of 3.1) (Use appropriate factor(s) from the tables provided.) Project x1 Project x2 Initial investment 5 (80,000) 5 (120,000) Net cash flows in: Year 1 25,000 60, een Year 2 35,500 50,000 Year 3 60,500 40,000 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
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