13.

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $252.000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 $ 20,000 116,000 176,000 $312,000 C2 $104,000 104,000 104,000 $312,000 $188,000 68,000 56,000 $312,000 Totals (1) Assume that the company requires a 10% return from its investments. Using net present value, determine which projects, if any, should be acquired. (Negative net present values should be indicated with a minus sign. Round your answers to the nearest whole dollar.) Project C1 Initial Investment Chart Values are Based on: Year Cash Inflow X PV Factor = Present Value Project C2 Initial Investment Year Cash Inflow X PV Factor - Present Value Project C3 Initial Investment Year Cash Inflow X PV Factor - Present Value