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Consider the following projects being considered by Hawkins Products Click the icon to view the projects.) (Click the icon to view Present Value of $1

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Consider the following projects being considered by Hawkins Products Click the icon to view the projects.) (Click the icon to view Present Value of $1 table) (Click the icon to view Present Value of Ordinary Annuity of $1 table) Compute the IRR of each project, and use this information to identify the better investment BRERO The IRR for each project is Project A Project B is the better investment lore Info . Project A: Costs $285,000 and offers seven annual net cash inflows of $55,000. Hawkins Products requires an annual return of 14% on investments of this nature. Project B: Costs $395,000 and offers 10 annual net cash inflows of $77,000. Hawkins Products demands an annual return of 12% on investments of this nature. Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.980 0.971 0.9620.9520.943 0.935 0.926 0.917 0.909 0893 0.877 0.870 0.862 0.847 0.833 Period 2 0.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 Period 3 0.971 0.942 0.915 0.8890.864 0.840 0.816 0.7940.772 0.751 0.712 0.675 0.658 0.641 0.609 0.579 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.7130681 0.650 0.621 0.5670.519 0.497 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0 596 0.564 0.507 0.456 0.432 0.410 0.3700335 Period 7 0.933 0871 0.813 0.7600.711 0.665 0.623 0.583 0.5470513 0.452 0.400 0.376 0.354 0.3140 279 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0 582 0.540 0.502 0.467 0.404 0.351 0.327 0.305 0.266 0233 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.225 0.194 Period 10 0.905 0 820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0270 0.2470 227 0.191 0.162 Period 11 0.896 0.80407220.650 0.585 0.527 0.475 0.429 0.3880.350 0.287 0.237 0.215 0.1950.162 0.135 Period 12 0.887 0.7880701 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.257 0.208 0.187 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.3880 340 0.299 02630 2050.160 0.141 0.125 0.099 0.078 Period 15 0 861 0.743 0.642 0.555 0.481 0.417 0.362 0.315 0.2750 239 0.183 0.140 0.123 0.108 0.084 0.065 Period 16 0.853 0.728 0.623 0.534 0.458 0.394 0.3390.292 0.252 0218 0.163 0.123 0.107 0.093 0.071 0.054 Period 17 10.844 0.7140 605 0.513 0.436 0.371 0317 0.270 02310.198 0.146 0.108 0.093 0.080 0.060 0.045 Period 18 0.836 0.7000.587 0.494 0.4160350 0.296 0.250 0212 0.180 0.130 0.095 0.081 0.069 0.051 0.038 Period 19 0828 0.686 0.570 0.475 0 3960331 0277 0.232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.3120.2580215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Period 21 0.811 0.660 0.538 0.439 0.3590 294 0242 0.1990.1640.135 0.093 0.064 0.053 0.044 0.031 0.022 Period 22 0 803 0.647 0522 0.422 0.34202780226 0.184 0.150 0.123 0.083 0.056 0.046 0.0380026 0.018 Period 23 0.795 0634 0.507 0.406 0.3260262 0.211 0.170 0.138 0.112 0.074 0049 0.040 0.033 0.0220015 Period 24 10.788 0.622 0.492 0.3900 3100247 0 197 0.158 0.126 0.1020066 0.043 0.035 0.028 0.0190013 Period 25 0.780 0.6100478 0.375 0295 0 233 0.184 0.146 0.116 0 092 0 059 0.038 0.030 0.024 0.0160.010 Perind 24 in Acno A. Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% Period 1 0.990 0.9800.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.8620 847 0.833 Period 2 1.970 1.942 1.913 1.886 1859 1.833 1.8081.783 1.759 1736 1.690 1647 1626 1.605 1.566 1528 Period 3 2.9412.88428292775 2.7232673 2624 25772531 2487 24022322 2283 2.2462 174 2.106 Period 4 3.902 3.808 3.717 3.630 3.5463.465 3.387 3312 3.240 3.170 3.037 2.914 2855 2.798 2690 2 589 Period 5 4.853 4713 4580 4.452 4329 4212 4.100 39933.890 3.791 3.605 3.433 33523 274 3.127 2.991 Period 6 5.795 5.601 5.417 5.2425.0764917 4.767 4.623 4.486 4355 4 1113.889 3.784 3.685 3.498 3326 Period 7 6.728 6.4726.230 6.002 5.786 5.582 5.389 5.206 5,033 48684.5644288 4.160 40393.812 3.605 Period 8 7.652 7.325 7020 6.733 6.463 6210 5.971 57475.535 5.335 4.968 4.639 4487 4.344 4.0783.837 Period 9 8.566 8.162 7.786 7435 71086 802 6515 6 247 5.995 5.7595.328 4.946 4.772 4.6074.303 4031 Period 10 9.471 8.983 8.530 8.111 772273607.0246.710 6.418 6.145 5.6505216 5.0194.833 4.494 4.192 Period 11 10.368 9.787 9253 8.760 8.306788774997,139 6.805 6.495 5.938 5.453 5 234 50294.6564327 Period 12 11 255 10 575 9.9549385 8.8638.384 7.9437.5367.161 68146.1945.660 5.421 5.1974.793 4.439 Period 13 12. 134 11 348 10.635 9.986 9.3948.853 8.3587.904 7.487 7 1036.424 5 842 5.5835.342 4910 4533 Period 14 13.004 12 106 11.296 10.563 9.899 9.295 8.74582447 786 7.367 6.6286.002 57245.468 5008 4.611 Period 15 13 865 12849 11.938 11.118 10.390 9712 9. 108 8.5598.061 7606 6 811 6.142 5.8475.575 5.092 4.675 Period 16 14.718 13.578 12 561 11652 10 838 10.106 9.447 8.851 831378246.9746.265 5.9545.6695 1624 730 Period 17 15.562 14 292 13.166 12 168 11 274 10.477 9763 9.122 8544 8.02271206373 6047 5.749 5222 4.775 Period 18 16,398 14.992 13.754 12 659 11 690 10 828 10.05993728.756 8 2017 250 6.467 6.128 5818 5.273 4812 Period 19 17 226 15678 14,324 13.1341208511.15810336 9.604 895083657366 65506.1985.87753164844 Period 20 18.046 16.351 14.877 13 590 12.462 11470 10 594 98189 129 8.5147.4696.6236259592953534870 Period 21 18.857 1701115.415 140291282111.764 10.836 100179.292 864975626 687 6.3125 973 53844 891 Period 22 19.660 17 658 15937 14.451 13.163 12042 11 061 10.2019.442 87727.645 67436 359 6.011 5.4104.909 Period 23 20.456 18 292 16.44414857 13 489 12 303 11 272 10.371 9.5808 8837.718 6792 6399 6.044 5432 4.925 Period 24 21243 18.914 16.936 15247 13 799 12.550 11.469 10.529 9.7078 985 7784 6835 6.4346.073 5 451 4937 Period 25 22 023 19,523 17413 15.622 14.094 12.783 11 654 10.675 98239.0777843 68736.464 6097 5.467 4948 Period 26 22796 20,121 17 877 15 983 14.375 13 003 11826 10 8109 929 9.161 7896 6.906 8.491 8.118 5.480 4956 Project A: thing Project B: 7-8% ment. 9 - 10% 8-9% Project B: lent. 12 - 14% 14 - 15% 10 - 12% Project B: 7 V is the better investment. Project A Project B

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