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 ond C2. Both require an initial investment of $264,000 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 Project 1 Project C2 Year 1 $ 24,000 $ 188,200 Year 2 120,000 108.800 Year 3 180,000 188,800 Totals $ 324,220 $ 324,202 a. The company requires a 10% return from its investments. Compute net present values using factors from Table 3.1 in Appendix B to determine which projects, if any, should be accepted. b. Using the answer from porta, is the internal rete of return higher or lower than 10% for (i) Project C1 and (i) Project C2? Complete this question by entering your answers in the tabs below. Required A Required B 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. (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 S 264.000 Initial Investment Chart Values are based on: PV Factor Present Value Year Year 1 Year 2 Year 3 100% Cash Intlow X 24.000 x 120.000 180.000 x Present value of cash inflows Present value of cash inflows Net present value 0 Project C2 S 264.000 PV Factor Cash Inflow Present Value Initial Investment Year Year 1 Year 2 Year 3 0 Required A Required B >