NPV and IRR, Mutually Exclusive Projects For discount factors use Exhibit 120-1 and Exhibit 128-2. Techno Inc. intends to invest in one of two competing types of flexible manufacturing systems: FLEX-1K and FLEX-22. Both systems have a project life of 10 years. The purchase price of the FLEX-1K system is $9,600,000, and it has a net annual after-tax cash inflow or $2,400,000. The FLEX-22 Is more expensive, selling for $11,200,000, but it will produce a not annual after-tax cash inflow of $2,800,000. The cost of capital for the company is 129 Required: 1. Calculate the NPV for each project. Round present value calculations and your final answers to the nearest dollar FLEX-1K: FLEX-22 which model would you recommend using NPV? 2. Calculate the IRR for each project. FLEX IK FLEX 22 Which model would you recommend using IRR? 194 2% 3% 646 79 946 10% 12% 14% 1694 18% 20% 2594 309 10.99010 0.93039 0.97087 0.96194 0.95238 0.94340 0.93458 0.92593 0.01743 0.90909 0.89286 0.87719 0.86207 0.84746 0.83333 0.80000 0.76923 2 0.98030 0.96117 0.94260 0.92456 0.90703 0.89000 0.87344 0.85734 0.84168 0.82645 0.79719 0.76947 0.74316 0.71818 0.69444 0.64000 0.59172 3 0.97059 0.94232 0.91514 0.88900 0.86384 0.83962 0.81630 0.79383 0.77218 075131 0.71178 0.67407 0.64066 0.60863 0.57870 0.51200 0.45517 4 0.96098 0.92385 0.88849 0.85480 0.82270 0.79209 0.76290 0.73503 0.70843 0.68301 0.63552 0.59208 0.55229 0.51579 0.48225 0.40960 0,35013 5 0.95147 0.90573 0.86261 0.82193 078353 0.74726 0.71299 0.68058 0.64993 0.62092 0.56743 0.51937 0.47611 0.43711 0.40188 0.32768 0.26933 6 0.94205 0.88797 0.83748 0.79031 0.74622 0.70496 0.66634 0.63017 0.59627 0.56447 0.50663 0.45559 0.41044 0.37043 0.33490 0.26214 0.20718 7 0.93272 0.87056 051309 0.75992 0.71068 0.66506 0.62275 0.58349 0.54703 0.51316 0.45235 0.39964 0.35383 0.31393 0.27908 0.20972 0.15937 8 0.92348 085349 078941 0.73069 0.67684 0.62741 0.58201 0.54027 0.50187 0.46651 0.40388 0.35056 0.30503 0.26604 0.23257 0.16777 0.12259 9 0.91434 0.83676 0.76642 0.70259 0.64461 0.59190 0.54393 0.50025 0.46043 0.42410 0.36061 0.30751 0.26295 0.22546 0.19381 0.13422 0.09430 10 0.90529 0.82035 0.74409 0.67556 0.61391 0.55839 0.50835 0.46319 0.42241 0.38554 0.32197 0.26974 0.22668 0.19106 0.16151 0.10737 0.07254 11 0.89632 0.80426 0.72242 0.64958 0.58468 0.52679 0.47509 0.42888 0.38753 0.35049 0.28748 0.23662 0.19542 0.16192 0.13459 0.08590 0.05580 12 0.88745 0.78849 0.70138 0.62460 0.55684 0.49697 0.44401 0.39711 0.35553 0.31863 0.25668 0.20756 0.16846 0.13722 0.11216 0.06872 0.04292 13 0.87866 0.77303 0.68095 0.60057 0.53032 0.46884 0.41496 0.36770 0.32618 0.28966 0.22917 0.18207 0.14523 0.11629 0.09346 0.05498 0.03302 14 086996 0.75788 0.66112 0.57748 0.50507 0.44230 0.38782 0.34046 0.29925 0.26333 0.20462 0.15971 0.12520 0.09855 0.07789 0.04398 0.02540 15 0.86135 0.74301 0.64186 0.55526 0.48102 0.41727 0.36245 0.31524 0.27454 0.23939 0.18270 0.14010 0.10793 0.08352 0.06491 0.03518 0.01954 16 0.85282 0.72845 0.62317 0.53391 0.45811 0.39365 0.33873 0.29189 0.25187 0.21763 0.16312 0.12289 0.09304 0.07078 0.05409 0.02815 0.01503 17 0.84438 0.71416 0.60502 0.51337 0.43630 0.37136 0.31657 0.27027 0.23107 0.19784 0.14564 0.10780 0.08021 0.05998 0.04507 0.02252 0.01156 18 0.83602 0.70016 0.58739 0.49363 0.41552 0.35034 0.29586 0.25025 0.21199 0.17986 0.13004 0.09456 0.06914 0.05083 0.03756 0.01801 0.00889 19 0.82774 0.68643 0.57029 0.47464 0.39573 0.33051 0.27651 0.23171 0.19449 0.16351 0.11611 0.08295 0.05139 0.04308 0.03130 0.01441 0.00684 20 0.81954 0.67297 0.55368 0.45639 0.37689 0.31180 0.25842 0.21455 0.17843 0.14864 0.10367 0.07276 0.05139 0.03651 0,02608 0.01153 0.00526 21 0.81143 0.65978 0.53755 0.43883 0.35894 0.29416 0.24151 0.19866 0.16370 0.13513 0.09256 0.06383 0.04430 0.03094 0.02174 0.00922 0.00405 22 0.80340 0.64684 0.52189 0.42196 0.34185 0.27751 0.22571 0.18394 0.15018 0.12285 0.08264 0.05599 0.03819 0.02622 0.01811 0.00738 0.00311 23 0.79544 0.63416 0.50669 0.40573 0.32557 0.26180 0.21095 0.17032 0.13778 0.11168 0.07379 0.04911 0.03292 0.02222 0.01509 0.00590 0.00239 24 0.78757 0.62172 0.49193 0.39012 0.31007 0.24698 0.19715 0.15770 0.12640 0.10153 0,06588 0.04308 0.02838 0.01883 0.01258 0.00472 0.00184 25 0.77977 0.60953 0.47761 0.37512 0.29530 0.23300 0.18425 0.14602 0.11597 0.09230 0.05882 0.03779 0.02447 0.01596 0.01048 0.00378 0.00142 26 0.77205 0.59758 0,46369 0.36069 0.28124 0.21981 0.17220 0.13520 0.10639 0.08391 0.05252 0.03315 0.02109 0.01352 0.00874 0.00302 0.00109 27 0.76440 0.58586 0.45019 0.34682 0.26785 0.20737 0.16093 0.12519 0.09761 0.07628 0.04689 0.02908 0.01818 0.01146 0.00728 0.00242 0.00084 28 0.75684 0.57437 043708 0.33348 0.25509 0.10563 0.15040 0.11591 0.08955 0.06934 0.04787 0.02551 0.01567 0.00971 0.00607 0.00193 0.00065 29 0.74934 0.56311 042435 0.32065 0.24295 0.18456 0.14056 0.10733 0.08215 0.06304 0.03738 0,02237 0.01351 0.00823 0.00506 0.00155 0.00050 30 0.74192 0.55207 0.41199 0.30832 0.23138 0.17411 0.13137 0.09938 0.07537 0.05731 0.03338 0,01963 0.01165 0.00697 0.00421 0.00124 0.00038 1% 29 39 4% 5% 79 B 96 1046 12% 149 169, 18% 20% 25% 30% 1 0.99010 0.98039 0 97087 096154 0.95238 0.94340 0.93458 0.92593 0.91743 0.90909 0.89286 0.87719 0.86207 0.84746 0.83333 0.80000 0.76923 2 1.97040 194156 1.91347 1.88609 1.85941 1.83339 1.80802 1.78126 1.75911 1.73554 1.69005 1.64666 1.60523 156564 1.52778 1.44000 1.36095 32.94099 2.88388 2.82861 277509 2.72325 2.67301 262432 257710 2.531292.48685 240183 2.32163 2.24589 2. 17427 2.10648 1.95200 1.81611 4 3.90197 3.80773 3.71710 3.62990 3.54595 3.46511 3.38721 3.31213 323972 3.16987 3.03735291371 2.79818 2.69006 258873 236160 216624 54.85342 4.71346 457971 445182 4.32948 4.21236 4.10020 3.99271 3.88965 3.79079 3.60478 3.43308 3.274293.12717 2.99061 2.68928 2.43557 6 5.79548 5.60143 S41719 5.24214 5,07569 491732 4.76654 4.62288 4.485924.35526 4.11141 3.88867 3,68474 3.49760 3.32551 295142 2.64275 76.72819 647199 623028 6.00205 5.78637 8.58238 5.38929 5.20637 5.03295 4.86842 4.56376 4.28830 4.03857 3.81153 3.60459 3.16114 2.80211 87.65168 7.32548 7.01969 6.73274 6,46321 6.20979 5.97130 5.74664 5.53482533493 4.96764 4.63886 4.34359 4.07757 3.83716 3.32891 2.92470 96.56602 8.16224778611 7.43533 7.10782 6.80169 6.51523 6.24689 5.99525 5.75902 5.32825 4.94637 4.60654 4,30302 4,03097 3.46313 3.01900 10 947130 8.98259 8.53020 8.11090 7.721737.36009 2.02358 671008 6,417666.14457 5.65022 521612 4.83327 4.49409 419247 3.57050 3.09154 11 10.36761 9.78685 9.25262 8.76048 8.30641 7.88687 7.49867 7.13896 6.805196.49506 593770 5.45273 5.02864 4.65601 4.32706 3.65640 3.14734 12 11.25508 10.57534 0.95400 9.38507 8.86325 8.38384 794260 7.53608 7.160736.81369 6.19437 5.66029 5.19711 4.79322 443922 3.72512 3.19026 13 12.13374 11.14837 10.63496 9.98565 9.39357 885268 8,35765 7.90378 748690710336 6.42355 5.84236 5.34233 4.90951 4.53268 3.78010 122328 14 13,00370 12.10625 11.29607 10 56312 9.89864 0.20408 8.74547 8.24424 7.786157.36660 6.62817 6.00207 5.46753 5,00806 461057 3.82408 124867 15 13.86505 12.84926 11.93794 1111839 10.37966 9.71225 9.10791 8.55048 8,06069 7.60608 681086 6.14217 5.57546 5.09158 4.67547 3.85926 126821 16 14.71787 13.57771 12.56110 11.65230 10.83772 10.10590 9.44665 8.85117 8.312567.82171 6.97399 6.26506 5.66850 5.16235 4.72956 1.88741 3.28324 17 15.562251429187 13.1661212.16567 11.27407 10.47726 9.76322 9.12164 8.54363 8.02155 7.11966.37286 5.74870 5.22233 4.77463 3.90991 3.29480 18 16.30827 14.99200 11.75351 1265930 11.68959 10.82760 10.05000 0.37189 8.7556) 8 20141 7.24967 6.46742 5.81785 5.27316 4,81219 3.92794 1.30369 19 17.22601 15,67846 14.12380 11.13194 1208532 11.15812 10.33560 9.60360 8.95011816492 736578 6.55037 5.87746 5.11624 484150 194235 131053 2018.04555 16.35143 14.87747 13.500331246221 11.46992 10.59401 9.81815 9.128SS 8 51356 7.46044 6.62213 5.92884 5.35275 4.86958 3.95388 3.31579 21 18.85698 17.01121 15.41502 14.02916 12.82115 11.76408 10.83553 10.01680 9.29224 8.64860 7.56200 6.68606 5.97314 5.38368 4.89132 1.96311 2.31984 22 19,66038 17.65805 15.93692 14.45112 13.16300 12.04158 11.06124 10.20074 9.442438.77154 7.64465 6.742946.01133 5.40090 4.00941 197049 3.32296 23 20.45582 18.29220 16:44361 14.85684 1245857 12.10338 11.27219 10.371069.58021888322 7.71143 6.79206 604425 543212 4.92453 1.97630 2.12535 24 21.24319 18.91193 169155415.24696 13.70864 12.55036 1146013 10.52876 9.70661891474 778412 6.83514 6.07263 5.45005 4.93710 198111 112719 25 22.02316 19.52346 1741315 15.62208 14.06394 1278116 11.65158 10.67478 0.82258 0.07704 7.84314 6.87201 6.00709 5:46601 4,04759 1.98480312861 26 2270520 20.1210417 87684 15.98277 14 375191100117 11.12578 10.80908 9.92897 9.16095 7.89566 60608 611818 5.41043 495632 1.98791 3.32970 27 2155961 20.70590 18.1270116.32959 14.643031321053 11.986711003516 10.02658 9.23722 794255 601515 613636 5.40189 4.96560 1.99031 31054 28 2431644212612718.76411 16.66106 14.898131140616 12.13711 11 05108 10.11613 9.10657 7.08442 6.96066 615204 5.50160 4.6067 3.99226 3.33118 292506579 21.14418 10.18845 16.98371 15.14107125907212.27767 11.15841 10.19828 9.16061 3.02181 6.98 104 616555 5.50933 4.9747299381 11168 10 25.1077122.1946 19.6004417.29201 1517245 11.7633 12.40904112577110.273659.42601 1.05518 7.00266 617720 5.51681 4.97104 190505111206