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. Juda Products is trying to decide which of the following projects to invest in: Project A costs $280,000 and offers seven annual net cash
. Juda Products is trying to decide which of the following projects to invest in: Project A costs $280,000 and offers seven annual net cash inflows of $59,000. Project B costs $385,000 and offers nine annual net cash inflows of $73,000. Compute the IRR of each project and use this information to identify the better investment. (Click the icon to view the present value annuity table.) 3 (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) First, compute the IRR of each project. The IRR for Project A is Reference Reference Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 10.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 0.877 0.862 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 43.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 3.812 3.605 Period 87.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 Period 98.566 8.162 7.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4.833 4.494 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12. 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.1945.660 5.1974.793 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.8436.873 6.097 5.467 4.948 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 169- Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.86 Period 20.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.74 Period 30.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.64 Period 40.961 0.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.55 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.47 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.41 Period 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.35 Period 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.30 Period 90.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.26 Period 10 0.905 0.820 0.744 0.676 0.614 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.22 Period 11 0.896 0.804 0.722 0.650 0.585 0.527 0.527 0.429 0.350 0.287 0.237 0.19 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.16 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.290 0.229 0.182 0.14 Period 14 0.870 0.758 0.758 0.661 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.12 Period 15 0.861 0.743 0.642 0.555 0.481 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.10 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.05 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.02 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.01 Period 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.00 Future Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2.010 3.030 4.060 5.101 2% 1.000 2.020 3.060 4.122 5.204 3% 1.000 2.030 3.091 4.184 5,309 4% 1.000 2.040 3.122 4.246 5.416 Future Value of Annuity of $1 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 2.050 2.060 2.080 2.100 2.120 3.153 3.184 3.246 3.310 3.374 4.310 4.375 4.506 4.641 4.779 5.526 5.637 5.867 6.105 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1.392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 1.126 1.194 2.986 3.583 1.149 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 Period 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 Period 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 Period 9 9.369 9.755 10.159 | 10.583 11.027 | 11.491 12.488 13.579 14.776 Period 10 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 | 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14.240 17.519 21.321 Period 6 Period 7 Period 8 Period 9 Period 10 1.062 1.072 1.083 1.094 1.105 1.172 1.195 1.219 1.265 1.316 1.369 1.423 1.480 1.230 1.267 1.305 1.344 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 4.300 2.700 3.185 3.759 4.435 5.234 5.160 6.192 1.384 1.426 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 Period 12 12.683 13.412 14.192 15.026 15.917 | 16.870 18.977 21.384 24.133 27.271 30.850 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 32.089 36.786 Period 14 14.947 15.974 17.086 18.292 | 19.599 21.015 24.215 27.975 32.393 37.581 43.672 Period 15 16.097 | 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 51.660 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 Period 25 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 Period 40 48.886 60.402 75.401 95.026 120.800 154.762259.057 442.593 767.0911,342.025 2,360.757 1.243 1.268 1.294 1.319 1.346 1.469 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2.012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 1.513 1.558 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2.208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 3.386 4.292 6.848 10.83517.000 26.462 40.874 62.669 95.396 4.322 5.743 | 10.063 17.449 29.960 50.950 85.850 143.371 237.376 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378|1,469.772
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