Subject :- Account sExercise 24-11 (Algo) Net present value, unequal cash flows, and profitability index LO P3Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 9%return from its investments. (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.)Initial investmentNet cash flows in:Project X1Year 1Year 1Year 2Year 3Year 2Year 3a. Compute each project's net present value.b. Compute each project's profitability index. If the company can choose only one project, which should it choose on the basis ofprofitability index?Totalsinitial inconstatProject X1$(96,000)Complete this question by entering your answers in the tabs below.$33,00043,50068,500Required A Required BCompute each project's net present value. (Round your answers to the nearest whole dollar.)Net CashFlowsPresent Value of Present Value of1 at 9%Net Cash FlowsProject x2$(141,000)072,00062,00052,000

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

Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 9% 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.) Initial investment Net cash flows ins Year 1 Year 2 Project XI $ (96,000) 33,000 43500 Project x2 $ (141,000) 72,000 52.000

Following is information on two alternative investments projects being considered by Tiger Company. The company requires a 9% 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.) Initial investment Net cash flows ins Year 1 Year 2 Project XI $ (96,000) 33,000 43500 Project x2 $ (141,000) 72,000 52.000

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter15: Capital Investment Analysis

Section: Chapter Questions

Problem 15.3.1P

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