Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $228,000 and would yield the following annual net cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Net cash flows	Project C1	Project C2
Year 1	$ 12,000	$ 96,000
Year 2	108,000	96,000
Year 3	168,000	96,000
Totals	$ 288,000	$ 288,000

a. The company requires a 12% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. b. Using the answer from part a, is the internal rate of return higher or lower than 12% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question.

The company requires a 12% return from its investments. Compute net present values using factors from Table B.1 in Appendix B to determine which projects, if any, should be accepted. (Negative net present values should be indicated wi minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Project C1 Net Cash Flows Present Value of 1 at 12% = Present Value of Net Cash Flows Year 1 Year 2 Year 3 Totals $ 0 Project C2 Net Cash Flows Present Value of 1 at 12% II = Present Value of Net Cash Flows Year 1 Year 2 = = = Year 3 Totals $ 0 Which projects, if any, should be accepted Using the answer from part a, is the internal rate of return higher or lower than 12% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. (i) Is the internal rate of return higher or lower than 12% for Project C1? (ii) Is the internal rate of return higher or lower than 12% for Project C2