Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $306,000 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 Year 1 Year 2 Year 3 Totals Project C1 $ 38,000 134,000 194,000 Project C2 $ 122,000 122,000 122,000 $ 366,000 $ 366,000 a. The company requires a 9% 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 9% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B The company requires a 9% 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 with a 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 9% Present Value of Net Cash Flows Year 1 $ 38,000 x Year 2 134,000 x = Year 3 194,000 x = Totals $ 366,000 Present Value Project C2 Net Cash Flows x = of 1 at 9% Year 1 Year 2 = Year 3 = Totals $ 0 Present Value of Net Cash Flows Which projects, if any, should be accepted Project C2 < Required A Required B > Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $306,000 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 Year 1 Year 2 Year 3 Totals Project C1 $ 38,000 Project C2 $ 122,000 122,000 122,000 134,000 194,000 $ 366,000 $ 366,000 a. The company requires a 9% 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 9% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. Complete this question by entering your answers in the tabs below. Required A Required B Using the answer from part a, is the internal rate of return higher or lower than 9% 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 9% for Project C1? (ii) Is the internal rate of return higher or lower than 9% for Project C2? < Required A Lower Higher Required B >