NPV With Even Cash Flows and PV Index Project Comparisons Present Value of $1 at Compound Interest Periods 1 2 3 4 5 6 7 8 9 10 6.0% 6.50% 7.0% 4.0% 4.50% 5.0% 5.50% 7.50% 8.0% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.86533 0.85734 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.80496 0.79383 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.74880 0.73503 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.69656 0.68058 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533. 0.66634 0.64796 0.63017 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.60275 0.58349 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.56070 0.54027 0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.52158 0.50025 0.67556 0.64393 0.61391 0.58543 0.55839 0.53273 0.50835 0.48519 0.46319 Present Value of an Annuity of $1 at Compound Interest 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 7.50% 8.0% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 1.88609 1.87267 1.85941 1.84632 1.83339 1.82063 1.80802 1.79557 1.78326 2.77509 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.60053 2.57710 3.62990 3.58753 3.54595 3.50515 3.46511 3.42580 3.38721 3.34933 3.31213 4.45182 4.38998 4.32948 4.27028 4.21236 4.15568 4.10020 4.04588 3.99271 5.24214 -5.15787 5.07569 4,99553 4.91732 4.84101 4.76654 4.69385 4.62288 6.00205 5.89270 5.78637 5.68297 5.58238 5.48452 5.38929 5.29660 5.20637 6.73274 6.59589 6.46321 6.33457 6.20979 6.08875 5.97130 5.85730 5.74664 7.43533 7.26879 7.10782 6.95220 6.80169 6.65610 6.51523 6.37889 6.24689 8.11090 7.91272 7.72173 7.53763 7.36009 7.18883 7.02358 6.86408 6.71008 Periods 1 2 3 4 5 6 7 B 9 10 Two investment projects are being considered, Project X and Project Y. Forecasts of each project are provided below. The desired RATE OF INVESTMENT is 5.5% Present Value tables provided above. Compute the Present Value of the Cash Flows for each project. (round to nearest dollar) Compute the NPV for each project. (round to nearest dollar) Compute the Present Value Index (PV Index) for each project. (round to 2 places past the decimal) There are questions below the table. Answer all questions. Project X Project Y Cost $60,812 $147,279 Life 8 years 8 years $10,000 $25,000 Even Annual Cash Flows Cost $60,812 Project X Project Y $147,279 Life 8 years 8 years $10,000 $25,000 Even Annual Cash Flows Present Value of Cash Flows (round to nearest dollar) Amount to be invested (cost) $60,812 NPV (round to nearest dollar) PV Index (round to 2 places past decimal) $147,279 00 If the company can only afford to invest in one of the two projects, which project is preferred: Project True or False: A higher PV Index indicates a higher Internal Rate of Return (IRR): O Truc False A PV Index is necessary when