Following is information on two alternative investment projects being considered by Tiger Company. The company requires

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: Following Is Information On Two Alternative Investment Projects Being Considered By Tiger Company The Company Requires 1 (38.52 KiB) Viewed 29 times

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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. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project X1 $ (80,000) Project X2 $(120,000) Initial investment Net cash flows int 60,000 Year 1 Year 2 Year 3 25,000 35,500 50,000 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C Compute each project's net present value. Net Cash Flows Present Value of Present Value of Net 1 at 4% 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
Exercise 26-10 (Static) Net present value, unequal cash flows, and profitability index LO P3 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 $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Project XI $ (80,000) Project X2 $ (120,000) Initial investment Net cash flows in: 25,000 Year 1 Year 2 60,000 50,000 35,500 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? 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 < Required A Required C >
Exercise 26-10 (Static) Net present value, unequal cash flows, and profitability index LO P3 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, EV of $1. PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Initial investment Net cash flows in:: Project X1 $(80,000) Project X2 $(120,000) Year 1 Year 2 25,000 60,000 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? Complete this question by entering your answers in the tabs below. Required A Required B Required C If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index? < Required B Required C Project X1 Project X2