Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $306,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, FVA of $1)

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial Investment of $306,000 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 $ 38,000 134,000 194,000 $366,000 C2 $ 122,000 122,000 122,000 $366,000 c3 $206,000 86,000 74,000 $366,000 (1) Assume that the company requires a 9% 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 answers to the nearest whole dollar.) Project C1 Initial Investment Chart Values are Based on: Year Cash Inflow PV Factor Present Value 1 2 3 0 Initial Investment 1 2 3 ## Project C3 Initial Investment Year Cash Inflow 1 PV Factor Present Value 2 3 TABLE B.1" Present Value of 1 p=1/(1 + ir Rate Periods 1% 2% ** 4% 5% 7% 9% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 0.9803 0.9706 0.9610 0.9515 0.9420 0.9327 0.9235 0.9143 0.9053 0.8963 0.8874 0.8787 0.8700 0.8613 0 3528 0.8444 0.8360 0.8277 0.8195 0.7798 0.7419 0.7059 0.6717 0.9804 0.9612 0.9423 0.9238 0.9057 0.8880 0.8706 0.8535 0.8368 0.8203 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 0.4529 0.9709 0.9426 0.9151 0.8885 0.8626 0.8375 0.8131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3554 0.3066 0.9615 0.9246 0.8890 0.8548 0.8219 0.7903 0.7599 0.7307 0.7026 0.6756 0.6496 0.6246 0.6006 0.5775 0.5553 0.5339 0.5134 0.4936 0.4746 0.4564 0.3751 0.3083 0.2534 0.2083 0.9524 0.9070 0.8638 0.8227 0.7835 0.7462 0.7107 0.6768 0.6446 0.6139 0.5847 05568 05303 0.5051 0.4810 0.4581 0.4363 0.4155 0.3953 0.3769 0.2953 0.2314 0.1813 0.1420 0.9434 0.8900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 0.5919 0.5584 0.5268 0.4970 0.4688 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.3118 0.2330 0 1741 0 1301 0.0972 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.5227 0.5820 0.5439 05083 0.4751 0.4440 0.4150 0.3878 0.3624 0.3387 0.3166 0.2959 0.2765 0.2584 0.1842 0.1314 0.0937 0.0668 0.9259 0.8573 0.7938 0.7350 0.6806 0.6302 0.5835 0.5403 0.5002 0.4632 0.4289 0.3971 0.3677 03405 0.3152 0.2919 0.2703 0.2502 0.2317 0.2145 0.1460 0.0994 0.0070 0.0460 0.9174 0.8417 0.7722 0.7084 0.6499 0.5963 0.5470 0.5019 0.4604 04224 0.3875 0.3555 0.3262 0.2992 0.2745 0.7519 0.2311 0.2120 0.1945 0.1784 0.1160 0.0754 0.0490 0.0018 0.9091 0.8254 0.7513 0.6830 0.6209 0.5645 05132 0.4665 0.4241 0.3855 0.3505 0.3186 0.2897 0.2633 0.2394 02170 0.1978 0.1799 0.1635 0.1480 0.0923 0.0573 0.0356 0.0221 0.8929 0.7972 0.7118 0.6355 05674 0.5066 0,4523 0.4039 0.3606 0.3220 0.2875 0.2567 0.2292 0.2045 0.1827 0.1631 0.1456 0.1300 0.1161 0.1037 0.0588 0.0334 0.0189 00107 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 0.2843 02472 0.2149 0.1869 0.1625 0.1413 0.1229 0.1069 0.0929 0.0808 0.0703 0.0611 0.0304 0.0151 0.0075 0.0037 Used to come the present of a woman. Por ellow much would you need to set today at company to como TABLE B.2 Future Value of 1 f=(1+) Rate Periods 1% 2% 3% 5% 6% 7% 9% 10% 0 15 1 2. 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1.0100 1.0201 1.0303 1.0406 1.0510 1.0615 1.0721 1.0829 1.0937 1.1046 1.1157 1.1268 1.1381 1.1495 1.1610 1.1726 1.1843 1.1961 1.2081 1.2202 1.2824 1.3478 1.4166 1.4889 1.0000 1.0200 1.0404 1.0612 1.0824 1.1041 1.1252 1.1487 1.1717 1.1951 1.2190 1.2434 1.2682 1.2936 1.3195 1.3459 1.3728 1.4002 1.4282 1.4568 1.4859 1.6406 1.8114 1.9999 2.2080 1.0000 1.0300 1.0609 1.0927 1.1255 1.1593 1.1941 1.2299 1.2668 1.3048 1.3439 1.3842 1.4258 1.4685 1.5126 1.5580 1.6047 1.6528 1.7024 1.7535 1.8061 2.0938 2.4273 2.8139 3.2620 1.0000 1.0400 1.0816 1.1249 1.1699 1.2167 1.2653 1.3159 1.3686 1.4233 1.4802 1.5395 1.6010 1.6651 1.7317 1.8009 1.8730 1.9479 2.0258 2.1068 2.1911 2.6658 3.2434 3.9461 4.8010 1.0000 1.0500 1.1025 1.1576 1.2155 1.2763 1,3401 1.4071 1.4775 1.5513 1.6289 1.7103 1.7959 18856 1.9799 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 3.3864 4.3219 5.5160 7.0400 1.0000 1.0600 1.1235 1.1910 1.2625 1.3382 1.4185 1.5036 1.5938 1.6895 1.7908 1.8983 2.0122 2.1329 2.2609 2.3966 2.5404 2.6928 2.8543 3.0256 3.2071 4.2919 5.7435 7.6861 10.2857 1.0000 1.0700 1.1449 1.2250 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.1049 2.2522 2.4098 2.5785 2.7590 2.9522 3.1588 3.3799 3.6165 3.8697 5.4274 7.6123 10.6766 14.9745 1.0000 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 25182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 6.8485 10.0627 14.7853 21.7245 1.0000 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 28127 3.0658 3.3417 3.6425 3.9703 43276 4.7171 5.1417 5.6044 8.6231 13.2677 20.4140 31.4094 1.0000 1.1000 1.2100 1.3310 1.4541 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 10.8347 17.4494 28. 1024 45.2593 1.0000 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6,8660 7.6900 8.6128 9.6463 17.0001 29.9599 52.7996 93.0510 1.0000 1.1500 1.3225 1.5209 1.7490 20114 23131 26600 3.0590 3.5179 4,0456 4.6524 5.3503 6.1528 7.0757 8.1371 9.3576 10.7613 12.3755 14 2318 16.3665 32.9190 66 2118 133.1755 267.8635 Used to compute the future value of a known present amount. For example: What is the accumulated value of $3,000 invested today at 8 compounded quarterly for 5year. Using the factors of = 20 and i = 2 (20 quarterly periods and a quarterly interest rate of 2. the factori 1.4859. The accumulated value is $4.437.70(53.000 x 14559) -|-a to? 1 (1+1) TABLE B.3: Present Value of an Annuity of 1 Rate Periods 1% 2% 5% 6% 7% 8% 9% 10% 12% 1 15% 8929 1.6901 2.4018 3.0373 3.6048 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 0.9901 1.9704 2.9410 3.9020 4.8534 5.7955 6.7282 7.6517 8.5660 9.4713 10.3676 11.2551 12.1337 13.0037 13.8651 14.7179 15.5623 16.3983 17.2260 18.0456 22.0232 25.8077 29.4086 32.8347 0.9804 1.9416 2.8839 3.8077 4.7135 5.6014 6.4720 7.3255 8.1622 8.9826 9.7868 10.5753 11.3484 12.1062 12.8493 13.5777 14.2919 14.9920 15.6785 16.3514 19.5235 22 3965 24.9986 27.3555 0.9709 1.9135 2.8286 3.7171 4.5797 5.4172 6.2303 7.0197 7.7861 8.5302 9.2526 9.9540 10.6350 11.2961 11.9379 12.5611 13.1661 13.7535 14.3238 14.8775 17.4131 19.6004 21.4872 23.1148 0.9615 1.8861 2.7751 3.6299 4.4518 5.2421 6.0021 6.7327 7.4353 8.1109 8.7605 9.3851 9.9856 10.5631 11.1184 11.6523 12.1657 12.6593 13.1339 13.5903 15.6221 17.2920 18.6646 19.7928 0.9524 1.8594 2.7232 3.5460 4.3295 5.0757 5.7864 6.4632 7.1078 7.7217 8.3054 8.8633 9.3936 9.8986 10.3797 10.8378 11.2741 11.6896 12.0853 12.4622 14.0939 15.3725 16,3742 17.1591 0.9434 1.8334 2.6730 3.4651 4.2124 4.9173 5.5824 6.2098 5.8017 7.3601 7.8869 8.3838 8.8527 9.2950 9.7122 10.1059 10.4773 10.8276 11.1581 11.4699 12.7834 13.7648 14.4982 15.0463 0.9346 1.8080 2.6243 3.3872 4.1002 4.7665 5.3893 5.9713 6.5152 7.0236 7.4987 7.9427 8.3577 8.7455 9.1079 9.4466 9.7632 10.0591 10.3356 10.5940 11.6536 12.4090 12.9477 13.3317 0.9259 1.7833 2.5771 3.3121 3.9927 4.6229 5.2054 5.7466 6.2469 6.7101 7.1390 7.5361 7.9038 8.2442 8,5595 8.8514 9.1216 9.3719 9.6036 9.8181 10.6748 11.2578 11.6546 11.9246 0.9174 1.7591 2.5313 3.2397 3.8897 4.4859 5.0330 5.5348 5.9952 6.4177 6.8052 7.1607 7.4869 7.7862 8.0607 8.3126 8.5436 8.7556 8.9501 9.1285 9.8226 10.2737 10.5668 10.7574 0.9091 1.7355 2.4869 3.1699 3.7908 4.3553 4.8684 5.3349 5.7590 6.1446 6.4951 6.8137 7.1034 7.3667 7.6061 78237 8.0216 8.2014 8.3649 8.5136 9.0770 9.4269 9.6442 9.7791 4.9676 5.3282 5.6502 5.9377 5.1944 6.4235 6.6282 6.8109 5.9740 7.1196 7.2497 7,3658 7.4694 78431 8.0552 8.1755 8.2438 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 5.0188 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 5.0472 5.1280 6.1982 6.2593 6.4641 6.5660 6.6166 6.6418 Used to calculate the present value of a series of equal payments made at the end of each period for example: What is the present value of 2.700 per year for 10 years in an annual interest rate of For 10, 191, the PV actor is..41772.000 year for 10 years the equivalent of $12.35 today (53.000 x 64177 f=[(1 + i)" - lyi TABLE BAU Future Value of an Annuity of 1 Rate Periods 1% 2% 3% ** 5% 9% 10% 12% 15% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 25 30 35 40 1.0000 1.0000 1.0000 20100 2.0200 2.0300 3.0301 3.0604 3.0909 4.0604 4.1216 4.1836 5.1010 5.2040 5.3091 6.1520 6.3081 6.4584 7.2135 7.4343 7.6625 8.2857 8.5830 8,8923 9.3685 9.7546 10.1591 10.4622 10.9497 11.4639 11.5668 12.1687 12.8078 12.6825 13.4121 14.1920 13.8093 14.6803 15.6178 14.9474 15.9739 17.0863 16.0969 17.2934 18.5989 17.2579 18,6393 20.1569 18.4304 20.0121 21.7616 19.6147 21.4123 23.4144 20.8109 22.8406 25.1169 22.0190 242974 20.8704 28 2432 320303 36.4593 34.7849 40.5681 47.5754 41.0603 49.9945 604621 48.8864 60.4020 75.4013 1.0000 1.0000 1.0000 2.0400 20500 2.0600 3.1216 3.1525 3.1836 4.2465 4.3101 4.3746 5.4163 5.5256 5.6371 5.6330 6.8019 6.9753 7.8983 8.1420 8.3938 9.2142 9.5491 9.8975 10.5828 11.0256 11.4913 12.0061 12.5779 13.1808 13.4864 14.2058 14.9716 15.0258 15.9171 16.8699 16.6268 17.7130 18.8821 19.2919 19.5986 21.0151 20.0236 21.5786 23.2760 21.8245 23.6575 25.6725 23.6975 25 8604 28.2129 256454 28.1324 30.9057 27.6712 30.5390 33.7600 29.7781 33.0660 35.7856 41.6450 47.7271 54.8645 56,0649 56.4388 79.0582 73.6522 90.3203 95.0255 120.7998 154.7620 1.0000 1.0000 20700 20800 3.2149 3.2464 4.4999 4.5061 5.7507 5.8666 7.1533 7.3359 8.6540 10.2598 10.6366 11.9780 12.4870 13.8164 14.4856 15.7836 16.6455 17.8885 18.9771 20.1400 21.4953 22,5505 242149 25.1290 27.1521 27.8881 30.324 30.8402 33.7502 33.9990 37.4502 37 3790 41.4463 409955 45.7620 532490 73.1059 944608 113.2832 1282300 172.3168 1996351 250.0565 1.0000 10000 1.0000 1.0000 2.0000 2.1000 2.1200 2.1500 3.2781 3.3100 3.3744 3.4725 45731 4.6410 4.7793 4.9934 5.9847 6.1051 6.3528 6.7424 7.5233 7.7156 8.1152 8.7537 9.2004 9.4872 10.0890 11.0668 11.0285 11.4359 12.2997 13.7258 13.0210 13,5795 14.7757 16.7858 15.1929 15.9374 17.5487 20.3037 17.5603 18.5312 20.6540 24.3493 20.1407 213843 24.1331 29.0017 22.9534 24.5227 28.0291 34.3519 25.0192 27.9750 32.3926 40 5047 29.3609 31.7725 37.2797 47.5804 33.0034 35.9497 42.7533 55.7175 26.9737 40.5447 65.0751 413013 45.5092 55.7497 75.8364 450185 51.1591 63.4397 51.1601 57.2750 72.0524 102.4436 84.7000 98.3071 133 3330 212.7930 135.3075 164.4990 241.3327 4347451 215 7100 2710244 431.6635 337,5824 425025 7670914 1,779 0801 used to call the future value of nes of equal payments made the end of the example: What is the of 4.000 per year for an the FV 15. 54.000 per year for your cx 7. 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