Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $330,000 and would yield the following annual cash flows. PV of $1. FV of $1. PVA of $1, and FVA of S1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Totals ci $ 46,000 142, eee 202,000 $390,000 C2 $130,000 130,000 13 , $390,000 C3 $214,000 94,000 82,000 $390,000 1. Assume that the company requires a 8% return from its investments. Using net present value, determine which projects, if any, should be acquired. 2. Using the answer from part 1, is the internal rate of return higher or lower than 8% for Project C2? Complete this question by entering your answers in the tabs below. TABLE B.2 Future Value oft 1 = 10 + ir - 1 f=(1+ir Future Value of an Annuity of 1 10000 100 123 15200 11 20114 23130 SAM 5. 5 6 61520 6.01 COM 28 2521 2. 10000 25179 81548101551 9 19 11 ARE 110118612 1.000000000000 10000 1000000000000 000 1.010003000300 1.000 0.00 1.600 10700 10000 10000 1000 1.0201 404 10000 1001 11025 1.000 1.06120927 1.123.560 1.1664 118 12100 1.2544 1.19 11576 1.1910 122502597 296 1010 100 1024 125 1.39080614156 14 1.904 1993 12162 121 1538 15105 10615 1.1262 14 12653 10195 15007 15869 16721 1.7716 19738 1071 1.500 13150 140 1.730 2.2707 1.000 1171 1.2001 14775 12 2106 24760 10000 1.1951 3041 10 21710 2.15 1.104 2.7730 120 4 LO 2.15 23 2002 1.1150 1344 29000 24 2.316 1.12 12 LUS 16010 799 20122 25182 20121 2134 360 2.400 1.16 1315 5126 2017 31 3.7975 4M 1.1610 134505580 3645 4.172 5.43 1.17 11264 02.129 2004 2922 2000 4 1.10 1.2002 18520 2.2920 26 27000 5045 142122130 2.0258 2.4564 24 3.790 4171 1.2001 La 2106 2.5370 43157 5.1411 61150 16 2011 3.2011 1.2004 45610 1.6406 2.0938 26 5.4234 17.0001 1. 11 24223 21 7612390007 13 1744 1.416 29.999 2013 394 147853 24540 2.1004 1.482022003220 48010 16900 1027 14936 2173451404452513930510 1% 2 58 ex 73 93 10% 15% 1.0000 10000 10000 1.0000 10000 10000 10000 10000 1.0000 10000 2010020200 20300 2.0400 20600 20700 20800 2.1000 2.1500 3.0001 30604 30909 3.1216 3.15.25 3.136 3.2149 3.2464 3.2781 3.3100 3314 3.4725 40604 4.1216 4.1836 43101 4,3746 44999 5 45731 46410 4.7793 46934 5.1010 5.2040 5.4169 55256 5.3666 2. 5.9847 6.1051 6.7523 6.7424 5 64634 60 7 7.2135 7.4343 7.6625 7.9953 6.9253 2.157 7.7156 3.100 8.39 8.6540 8.9228 1952 9.2004 9.4872 10.000 8.7511 1 GB 8 8.2857 85830 8.8923 9.212 9.5491 9,2575 102580 10.6366 9 11.0285 11.4358 12.291 13.72 9.365 11.0266 18 11.4913 11970 1200 ** 13.0250 135195 14.7757 16.75 10 10.462 109887 114679 12.0061 12.5779 11808 13.8164 11 11.08 12.1687 12.8078 1.1929 169074 12.540 20.2017 142000 . 15. 12 166456 1926 12.6835 12:4121 14.1920 2013 15.058 159171 20.05 1897 16.8901783 2011 1) 18 16 290017 17.7130 2126 2010 w 2021 22.95344927 4 14 14,941415.9739 17.0863 end 18.2919 19.5986 21.0151 225505 24 2149 26.0192 27.9750 15 32.3996 205042 16.099 17.2934 18.5989 20.0236 21.5786 23.2760 251290 271501 23.3609 31.7725 32 277 55 17.2579186293 201569 21.325 23.6575 27 30 30 7501 33.0034 252.678 12 275 55715 13.30200121 212016 25.3404 21.2129 32.7502 STU 25.6454 13.6147 214123 234140 65.0751 281304 37.4502 413011 455002 55.17 208109 228456 3.1169 21.6712 305 w 37370 41.4463 45.0185 511591 20 22.0190 2294 2.8704 29.7781 33.0660 3.7856 51.1601 57.2750 23.412 320303 4500 41.6450 720524 47.7201 545 63200 73.1050 8420099.3471 122.32 212.7950 14.7309 405681 475754 56.00 6.4310 9460 113.2012 13630751644940241.3327 434751 10:22 90.3200 111.43481029172.310 215.7108 27100444016635 3811702 188864604020 75.4013 95.0056 1207938 154.78201986351 250.0565337.824 4425426 78.0914 1.7790903 de the future of a series of the end of each period. For example: What is the free of per year for you mig PVMwan 14 15 16 17 11 19 IN 10:13 12.95 12 220875 0.002 75 1 . 15.30 12.06 35 2118 131 25733 Wiseman - 11-a] (1 + TABLE B.3 Present Value of an Army of 2.540 3167 2007 123 2.0 1.00 Parade % 10% 12% 198 0.9901 09804 0.9709 09615 0.9524 09:34 09346 2 0.9174 09041039290196 18704 19416 1915 185 1000 1 11 17356 1601 2.000 2.7751 2.7212 26730 2620 25771 25313 2.000 24010 39000 1107 2171 2.2012 2.6290 15400 $ 2005 2.2012 13 2.3120 32797 4.1002 42124 19927 2.850 27900 36041 5.795 5.6014 5.4112 52021 5.0753 49173 47685 7 4.6220 4410 4 6.722 6.4720 6.0021 5.7864 27145 55024 5.3903 5.2004 5013 4684 4561 76517 7.3355 70197 6720 6.4612 41604 6.2000 5913 510 5.54 9 5,3349 46 B.GO 81622 LT 7.7861 705 7.1070 017 10 6.200 1 S. 9.4713 22 71 81100 47116 7.7217 7.3000 70236 67100 6.4177 61446 5.00 11 106 9736 5.080 9.25 7. 6.2012 C 597 . 12 11.2550 105.753 995.00 5231 13 79023 75% 7.1601 ET 13 6.1944 12.1331 11.3484106350 90 5.000 83571 10 14 13001 7.9038 7430 12.10 GRE 6.4235 13.000 55831 15 8.7455 9.896 3.242 7.7862 5599 ME 15 572 662 912 12865 16 12 cm 10.3732 7122 101 8.50 7 8067 CRO 16 SUM 14.7179 76061 68100 125m 5.87 116523 12.561 40 35 10.337 9.4656 10.105 17 7821 88514 11 50 8.312 155623 142819 0472 7822 9512 69700 13.166 12.1657 11274 5642 9129 1100 BOS 10.47 18 97612 21195 9.1216 8.5436 115 1269 16.30 149 7.1196 02 126981 19 2 11 60472 10827 2014 7393 19 was 12100 51 3.7556 200 15.6785 172260 4116 to 3.2014 72497 1210 9602 612 10316 725 9.60 8.9501 16.3514 8349 510 7358 14.8775 124622 114500 6182 220212 1952% 98181 9.1235 17.4130 15.6221 116536 35136 7434 6.500 30 25.8077 22.385 19.6004 17.2920 1.3725 13:48 10.6741 90770 6.4541 > 12.4090 11.25781027379.4269 8.0552 29.4086 24.996 214872 18.6646 16.3712 14.492 129477 32.8947 27.35552.1108 11.6546 10.566895412 817566.6166 19.7928 17.1591 15.066) 13:3317 11.924 10.757497791 820866418 Used to call the people wanddechre For Whatever you mig wind967F1-9. P. 64177.pere for years evento 12.335 d300 2152 2.10 11.236 NSEN 13500 NOS 14.00 127034 $123 TABLE B.1 Present Value of 1 p=1/(1+0 Rate Periods 13 5% 9% 10% 0.9259 1 2 0.9346 0.8734 0.8163 0.8929 0.7972 0.7118 4 5 6 7 3 9 10 0.9901 0.9003 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 12 13 14 DORRAS 0.9804 0.9612 0.9423 09238 0.9057 0.80 0.8706 0.255 0.8058 0.8.203 0.8043 0.7885 0.7730 0.7579 0.7430 0.7284 0.7142 0.7002 0.6864 0.6730 0.6095 0.5521 0.5000 04529 0.9709 09615 0.906 09206 0.9151 0.8890 0.85 OSAS 0.5626 0.8219 0.0075 0.7903 0.8131 0.7599 0.78 07307 0.7664 0.7026 0.7441 0.6756 0.7224 0.7014 06246 0.6810 0.600 0.6611 05775 0.5419 05553 0.6232 0.5339 0.6050 05134 0.5874 0.4936 0.5700 0.4746 0.5537 0.4564 0.4776 0.3751 0.4120 0.3083 0.954 0.2534 0.3066 0.2083 0.8787 0.8700 0.8613 0.8528 08444 0.8360 02277 0.8195 0.7798 0.7419 0.7050 0.6717 0.9524 0.9070 0.9638 0.0227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 0.5568 0.5303 0.5051 0.4310 0.4581 0.4363 0.4155 0.2957 0.3769 0.2953 0.2314 0.1813 0.1420 0.9634 0.1900 0.8996 0.7921 0.7473 0.7050 0.6651 06214 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.9936 0.3714 0.3503 0.2005 0.3118 0.2330 0.1741 0.101 0.0972 0.7130 O.GE 0.6227 0.5820 0.5439 0.5083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 02765 0.2584 0.1842 0.1314 0.0937 0.7938 0.7350 0.6806 0.6302 0.5835 05403 05002 0.4632 0.4289 0.3971 0.3677 0.3405 0.3152 0.2919 0.2703 0.2502 02317 0.2165 01460 0.0994 0.0676 0.0460 0.9174 0.8417 0722 07084 0.6499 05963 05470 0 5019 0.6604 0.4224 0.2275 0555 0.3262 0.2992 0.2745 0.2519 0 2311 02120 0.1945 0.1784 0.1160 0.0754 00490 0.0018 09091 0.024 0.7513 0.6830 0.6209 0.5645 0.5132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 0.2176 0.1978 0.1799 0.1635 0.1186 0.0923 0.0573 0.0356 0.0221 15% 0.8696 0.7561 0.6575 05718 0.4972 04123 0.3759 0.3269 02843 0.2472 0.2149 0.1860 0.1625 0.1413 0.1220 0.1069 00920 0.000 00700 0.0611 0.0304 0.0151 0.0075 0.0037 0.5674 0.50G 0.4523 04039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2046 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 00588 0.0334 2010 0.0107 16 17 18 19 20 25 ied to compute the eve of known future. For example: How much would you need to compounded semua 55.000 in 6 years Unge of 112 prise wise you were in 27500 $330,000 and would yield the following annual cash flows. (PV of $1. FV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Totals ci $ 46,000 $ 142,000 202, eee $390,000 C2 $130,000 130,000 130,eee $390,000 C3 $214,000 94,000 82,000 $390,000 Required 1 Required 2 Assume that the company requires a 8% return from its investments. Using net present value, determine which projects, if any, should be acquired. (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.) 1. Assume that the company requires a 8% return from its investments. Using net present value, determine which projects, if any. should be acquired. 2. Using the answer from part 1, is the internal rate of return higher or lower than 8% for Project C2? Complete this question by entering your answers in the tabs below. Project C1 Initial Investment Chart Values are Based on: % Year Cash Inflow X PV Factor 1 2 3 3 Present Value Required 1 Required 2 Using the answer from part 1, is the internal rate of return higher or lower than 8% for Project C2? Is the internal rate of return higher or lower than 8% for Project C2? 10 Project C2 Initial Investment Year Cash Inflow 1 PV Factor Present Value = 2. 3 = 0 Project C3 Initial Investment Year Cash Inflow 1 1 PV Factor Present Value 2 = 3 0