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Net present value and Profitability Index of each Project

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Following is information on two alternative investments being considered by Tiger Co. The company requires an 8% return from its

 investments. FV of $1, PVA of SI and FVA of SJ (use appropriate factor(s) from the tables provided.) 49, see Initial investment Expected net cash f lows in: Year I Year 2 Year 3 Project XI $ (108, aøe) 39 , aøe 74, see Project X2 81,øeø 71,øeø 61,øeo 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 final answers to the nearest dollar.) Project Xl Year 1 Year 2 Year 3 Totals Amount invested Net present value Project X2 Year 1 Year 2 Year 3 Totals Amount invested Net present value resen Required A Required B


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