0 ER Two mutually exclusive investment projects have the following forecasted cash flows: A -$15,000 +8,000 +8,000 +8,000 +8,000 +55,000 Use Table II and Table IV to answer the questions. Year 0 1 2 eBook 3 4 B -$15,000 % 0 0 0 a. Compute the internal rate of return for each project. Round your answers to one decimal place. IRRA: % IRRA: b. Compute the net present value for each project if the firm has a 10 percent cost of capital. Round your answers to the nearest dollar. NPVA: $ NPVB: $ c. Which project should be adopted? Why? -Select- should be chosen because it has the higher -Select- It is assumed that the firm's reinvestment opportunities are more accurately represented by the -Select- TABLE II Present Value Interest Factor (PVIF) ($1 at i % per period for a periods); 1 PVIF PV FV. (PVIF,..) (1+i Period, n 1% 0 1 2 3 4 5 6 7 8 3% 8% 1.000 1.000 1.000 1.000 0.990 0.980 0971 0.926 0.980 0.842 0.826 0.971 0.961 0.772 0.751 0.708 0.683 0.650 0.621 0.593 0.596 0.564 0535 0513 0.482 0467 0.434 0.391 0.361 0.352 0.322 0.896 0.804 0.722 0.350 0317 0.287 0.319 0.286 0.257 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.258 0.229 0.263 0.232 0.205 0.209 0.183 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.889 0.942 0.915 0.864 0.840 0.816 0.794 0.924 0.889 0.855 0.823 0,792 0.763 0.735 0.822 0.951 0.906 0.863 0.784 0.747 0.713 0.681 0.942 0.888 0.838 0.790 0.746 0.705 0.666 0.630 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.650 0.585 0.527 0.475 0.429 0.388 0.625 0.557 0.497 0.444 0.397 0.356 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0577 0.505 0,442 0.388 0.340 0.299 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.853 0.728 0.623 0.534 0.458 0.394 0.339 0.292 0.252 0218 0.188 0.163 0.844 0.714 0.605 0513 0.436 0.371 0317 0.270 0.231 0.198 0.170 0.836 0.700 0.587 0.494 0.416 0.350 0.296 0.250 0212 0.829 0.686 0.570 0.475 0.396 0.331 0.276 0.232 0.194 0.820 0.673 0554 0.456 0.377 0.312 0.258 0.788 0.622 0.492 0.390 0.310 0.247 0.197 25 0.780 0.610 0.478 0.375 0.295 0.233 0.184 30 0.742 0.552 0412 0.308 0.231 0.174 0.131 0.099 0.672 0.453 0.307 0.208 0.142 0.097 0.067 0.046 0.608 0372 0.228 0.141 0.087 0.054 0.034 0.021 0.550 0.305 0.170 0.095 0.054 0.030 0.017 Period, n 14% 15% 16% 17% 1.000 1.000 1.000 1.000 0.877 146 0.153 0.130 0.180 0.164 0215 0.178 0.149 24 0.158 0.126 0.146 0.116 0.075 0.032 40 50 60 0.013 0.010 0.006 0.870 0.862 0.855 0.769 0.731 0.675 9 10 11 12 13 14 15 16 17 18 19 20 0 1 2 3 4 5 6 7 8 2708983 4% 5% 1.000 1.000 1.000 0.962 0.952 0.943 7% 1.000 0.935 0.624 0.572 0.552 0.534 0.482 0.516. 0.499 0.456 0.437 0.419 0.402 0.592 0.519 0.497 0.476 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.351 0.327 0.305 0.285 0.266 0.308 0.284 0.263 0.243 0.225 0.270 0.247 0.227 0.208 0.191 0.237 0215 0.195 9 10 0.178 0.162 0.152 0.137 0.124 0.112 0.130 0.116 0.093 11 12 0208 0.187 0.168 13 0.182 0.163 0.145 0.104 14 0.160 0.141 0.125 0.111 0.099 0.068 0.078 15 0.140 0.123 0.108 0.095 0.084 0.074 16 0.123 0.107 0.093 0.081 0.071 0.062 17 0,106 0.093 0.080 0.069 0.060 0.052 18 0.095 0.081 0.069 0.059 0.051 0.044 19 0.083 0.070 0.060 0.051 0.043 0.037 0.073 0.061 0.051 0.043 0.037 0.031 0.043 0.035 0.028 0.023 0.019 0.015 0.038 0.030 0.020 0.016 0.020 0.015 0.009 0.007 0.013 0.010 0.005 0.004 0.024 0.012 0.003 0.001 0.001 40 0.005 0.004 0.002 0.001 50 0.001 0.000 0.000 60 0.000 0.000 0.000 0.000 0.000 24 25 0.756 0.743 0.658 0.641 18% 19% 1.000 1.000 0.847 0.840 0.718 0.706 0.609 0.593 20% 1.000 0.833 0.694 0.579 0.249 0.233 0.209 0.194 0.162 0.135 0.176 0.148 0.001 0.000 0.000 9% 1.000 0.917 24% 1.000 0.806 0.650 0.524 0,423 0.341 0.275 0.222 0.179 0.144 0.116 0.094 0.076 0.061 0.049 0.026 0.065 0.040 0.054 0.032 0.045 0.038 0.021 0.031 0.017 0.026 0.014 0.013 0.006 0.005 0.002 0.001 0.000 0.000 0.000 10% 1.000 0.909 0.000 0.000 0.424 0.386 0.102 0.092 0.057 0.022 0.009 0.003 12% 1.000 1.000 0.901 0.893 1.000 0.781 0.812 0.797 0.731 0712 0.659 0.636 0567 0.138 0.116 0.104 0.124 0.082 0.066 0.074 0.059 0.044 0.033 0015 0.011 0.507 0.452 0.404 0.005 0.003 0.002 0.001 32% 1.000 0.758 0.066 0.047 0.052 0.036 0.040 0.027 0.032 0.021 0.025 0.016 0.019 0.012 0.015 0.009 0012 0.007 0.009 0.005 0.007 0.004 0.003 0.001 36% 1.000 0.735 0.002 0.001 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.292 0215 0.139 0.108 0.106 0.082 0.085 0.062 0.046 0.034 0.158 0.116 0.085 0.063 13% 1.000 0.885 0.783 0.693 0613 0.543 0.480 0.425 0.376 0.333 0.295 0.610 0574 0.541 0510 0.477 0.435 0.398 0.373 0.329 0.291 0.250 0.227 0.189 0.178 0.143 0.261 0231 0.007 0.005 0.004 0.003 0204 0.181 0.160 0.141 0.125 0.111 0.098 0.087 0.053 0.047 0.026 0.008 0.002 0.001 40% 1.000 0.714 0.364 0.260 0.186 0,133 0.095 0.068 0.048 0.035 0.025 0.025 0.018 0.018 0.013 0.014 0.009 0.010 0.006 0.005 0.003 0.002 0.002 0.001 0.000 0.002 0.001 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 TABLE N Present Value of an Annuity Interest Factor (PVIFA) (S1 per period at P per period for a periods); PVAN PMT (PVIFA,.) PVIFA Period, n 1% 996 8% 0.926 0.917 0.990 1.970 2.941 1.886 1.859 2.775 3.630 4.853 4.713 4.580 4.452 1.833 1.808 1.783 1.759 2.723 2.673 2.624 2.577 2531 3.240 3.902 3.808 3.717 3.546 3.465 3.387 3.312 3.170 3.102 5 4.329 4.212 4.100 3.993 3.890 3.791 3.696 6 5.795 5.601 5417 5.242 5.076 4.917 4.766 4.623 4.486 4.355 4.231 7 6.728 6.472 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.712 8 7325 7.020 6.733 6.463 6.210 5.971 5,747 5.535 6.247 5.995 9 7.108 6.802 6.515 10 9.471 6.418 6.145 11 6.492 6.194 6.750 6.424 13 14 15 7.549 7.120 8.162 7.786 7.435 8.983 8.530 8.111 7.722 7.360 7.024 6.710 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7.139 6.805 6.495 12 11.255 10.575 9.954 9.385 8.863 8.384 7.943 7.536 7.161 6.814 12.134 11.348 10.635 9.986 9.394 8.853 8.358 7.904 7.487 7.103 13.004 12.106 11.296 10.563 9.899 9.295 8.745 8.244 7.786 7.367 6.982 6.628 13.865 12.849 11.938 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 16 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.312 7.824 7.379 6.974 12.166 11.274 10.477 9.763 9.122 8.544 8.022 12.659 11.690 10.828 10.059 9.372 8.756 8.201 13.134 12.085 11.158 10.336 13.590 12.462 11.470 10.594 15.247 13.799 12.550 11.469 15.622 14.094 12.783 11.654 17.292 15.373 13.765 12.409 19.793 17.159 15.046 13.332 21.482 18.256 15.762 13.801 22.623 18.929 7.702 7.250 7.366 7.839 8.514 7.963 7.469 17 15.562 18 16.398 19 17.226 20 18.046 21.243 25 22.023 30 25.808 40 32.835 50 39.196 60 44.955 14.292 13.166 14.992 13.754 15.678 14.324 16.351 14.877 18.914 16.936 19.523 17413 22.397 19.600 27.355 23.115 31424 25.730 34.761 27.676 9.604 8.950 8.365 9.818 9.128 10.529 9.707 8.985 8.348 7.784 10.675 9.823 9.077 8.422 7.843 11.258 10.274 11.925 10.757 9.779 12.233 12377 11.048 9.967 9.427 8.694 8.055 10.962- 9.915 16.161 14.039 1 2 3 4 BARLSHIRRS 24 Period n CMHSRDR2A7A29RS 7.652 8.566 2 3 4 2.914 5 3.433 6 3.889 7 4.288 8 9 10 4.639 4.946 5.216 11 5.453 12 5.660 13 5.842 14 6.002 15 6.142 16 6.265 17 6.373 18 6.467 19 6.550 20 6.623 6.835 24 25 6.873 30 7.003 40 7,105 50 60 0.877 1.647 2.322 7.133 7140 2% 3% 0.980 0.971 1.942 1913 2.884 2.829 6% 4% 5% 7% 0.962 0.952 0.943 0.935 15% 16% 0.870 0.862 17% 18% 19% 0.847 0.840 1.626 1.605 2.283 2246 2.210 0.855 1.585 1.566 1.547 2.174 2.140 2.743 2.690 2.639 3.199 3.127 3.058 2.855 2.798 3.352 3.274 3.784 3.685 4.160 4.039 4.487 4.344 4.772 4.607 5.019 4.833 5.234 5.029 5.421 5.583 5.342 3.589 3.498 3.410 3.922 3.812 3.706 4.207 4.078 4.451 4.303 4.163 4.031 4.659 4.494 4.339 4.193 3.954 3.837 4.836 4.656 4.486 4.793 4611 4.910 4.715 5.724 5.468 5.008 4.802 5.197 4.988 5.118 5.229 5.847 5.575 5.324 5.092 4.876 5.954 5.669 5.405 5.162 4.938 6.047 5.749 5.475 5.222 4.990 6.128 5.818 5.534 5.273 5.033 6.198 5.877 5.584 5.316 6.259 5.929 5.628 5.353 5.101 6.434 6.073 5.746 5.451 5.182 6.464 6.097 5.766 5.467 5.195 6.566 6.177 6.642 6.233 6.661 6.246 5.070 6665 6340 5.829 5.517 5.235 5,871 5.548 5.258 5.880 5991 5.554 5.262 SECC 5147 3.421 3.566 3.682 4.327 3.776 4.439 3.851 3.912 3.962 4.001 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 4.937 4.948 4.979 4.997 4.999 F000 24% 0.806 1.457 1.392 4.033 4.059 20% 0.833 1.528 2.106 1.981 1.332 1.868 1.766 2.589 2.404 2.241 2.991 2.745 2.532 2345 3.326 3.020 2.759 2.534 3.605 2.937 2.678 3.076 2.786 3.242 3.184 2.868 4.080 4.097 10% 11% 12% 0.909 0.901 0.893 1,690 2.402 3.037 3.605 4.110 4.143 4.147 4.160 4.166 1.736 1.713 2.487 2.444 4.167 un 4.111 4.564 5.335 5.146 4.968 5.759 5.537 5.889 6.207 8.951 9.042 9.074 28% 32% 0.781 0.758 3.269 2.930 3.335 2.978 3.387 3.013 3.427 3.040 3.459 3.061 3.483 3.076 3.503 3.088 3.518 3.097 3.529 3.104 3.539 3.109 3.546 3.113 3.562 3.121 3.564 3.122 2.096 1.966 2181 3.569 3.124 3.571 3.125 5.328 5.650 5.938 3.571 3.125 1m 8.244 8.304 8.324 36% 0.735 1.276 1.674 2.399 2.455 13% 0.885 1,668 2.361 2.974 3.517 3.998 4.423 4.799 5.132 5.426 5.687 5.918 6.122 6.302 6.462 6.604 6.729 6.840 6.938 7.025 7.283 7.330 7.496 7.634 7.675 7.687 40% 0.714 1.224 1.589 1.849 2.035 2.168 2.263 2.540 2.331 2.603 2.379 2.650 2.683 2.708 2.727 2414 2.438 2.456 2.469 2.740 2478 2.750 2.484 2.758 2.489 2.763 2.492 2.767 2494 2.770 2.496 2.772 2.497 2776 2.499 2.776 2.499 2.778 2.778 2.778 2.500 2.500 2.500