Following is information on two alternative investments being considered by Tiger Co. The company requires...
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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 FVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 Project X2 Initial investment $ (96,000 ) $ (152,000 ) Expected net cash flows in: Year 1 33,000 72,000 Year 2 43,500 62,000 Year 3 68,500 52,000 a. Compute each projects net present value. b. Compute each projects profitability index. If the company can choose only one project, which should it choose?
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