1.

Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $270,000 and would yield the following annual net cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Net cash flows Project C1 Project C2 Year 1 $ 26,000 $ 110,000 Year 2 122,000 110,000 Year 3 182,000 110,000 Totals $ 330,000 $ 330,000 The company requires a 10% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. Using the answer from part a, is the internal rate of return higher or lower than 10% for (i) Project C1 and (ii) Project C2?

2.

Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of $1, FV of $1, PVA of $1, and FVA of $1)

Note: Use appropriate factor(s) from the tables provided.

Sales of new product	$ 1,890,000
Expenses
Materials, labor, and overhead (except depreciation)	1,471,000
DepreciationMachinery	116,750
Selling, general, and administrative expenses	164,000

Required:

1. Determine income and net cash flow for each year of this machines life.
2. Compute this machines payback period, assuming that cash flows occur evenly throughout each year.
3. Compute net present value for this machine using a discount rate of 7%.'
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Complete this question by entering your answers in the tabs below. The company requires a 10% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. Note: Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of this machine's life. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of this machine's life. Complete this question by entering your answers in the tabs below. The company requires a 10% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. Note: Negative net present values should be indicated with a minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of this machine's life. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. Factor Company is planning to add a new product to its line. To manufacture this product, the company needs to buy a new machine at a $487,000 cost with an expected four-year life and a $20,000 salvage value. Additional annual information for this new product line follows. (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) Note: Use appropriate factor(s) from the tables provided. Required: 1. Determine income and net cash flow for each year of this machine's life. 2. Compute this machine's payback period, assuming that cash flows occur evenly throughout each year. 3. Compute net present value for this machine using a discount rate of 7%. Complete this question by entering your answers in the tabs below. Determine income and net cash flow for each year of this machine's life