Exercise 24-18 (Algo) Net present value, unequal cash flows, and internal rate of return LO P3, P4 Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $324,000 and would yield the following annual net cash flows. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 Year 2 Year 3 Totals Project Cl $ 44,000 140,000 200,000 $ 384,000 Project C2 $128,000 128,000 128,000 $ 384,000 a. The company requires a 8% 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. b. Using the answer from part a, is the internal rate of return higher or lower than 8% for (1) Project C1 and (i) Project C2? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B The company requires a 8% 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. (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) Project C1 Net Cash Flows Present Value Present Value of Required A Required B The company requires a 8% 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. (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.) Project C1 Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Year 1 $ 44,000 x Year 2 140,000 x Year 3 200,000 x Totals $ 384,000 Project C2 Net Cash Flows Present Value of 1 at 8% Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals $ Which projects, if any, should be accepted a. The company requires a 8% 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. b. Using the answer from part a, is the internal rate of return higher or lower than 8% for (0) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B Using the answer from part a, is the internal rate of return higher or lower than 8% for (0) Project C1 and (1) Project C2? Hint: It is not necessary to compute IRR to answer this question. () is the internal rate of return higher or lower than 8% for Project C1? (i) is the internal rate of return higher or lower than 8% for Project C27