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 Project C1 Project C2

Year 1 $ 38,000 $ 122,000

Year 2 134,000 122,000

Year 3 194,000 122,000

Totals $ 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.

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. EV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 Year 2 Project Cl $ 38,000 134,000 194,000 $366,000 Project 02 $122.000 122,000 122.000 Year 3 Totals $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 (1) 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. 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.) Net Cash Flows X Present Value of 1 at 9% Project C1 Year 1 Present Value of Net Cash Flows Year 2 Year 3 $ Present Value of Project C2 Net Cash Flows Present Value of 1 at 9% Net Cash Flows Year 1 Year 2 Year 3 Totals $ 0 Which projects, if any, should be accepted. Totals H =