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 $312,000 and would yield the following annual net cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 Year 2 Year 3 Totals Project C1 $ 40,000 136,000 196,000 Project C2 $ 124,000 124,000 124,000 $ 372,000 $ 372,000 a. The company requires a 9% 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 9% for (1) 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 The company requires a 9% 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 x Present Value of 1 at 9% Year 1 = Year 2 II Year 3 = Totals $ Present Value Project C2 Net Cash Flows x = of 1 at 9% Year 1 = Year 2 = Year 3 = Totals $ 0 Present Value of Net Cash Flows Present Value of Net Cash Flows