Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $312,000 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 Yoar 2 Year 3 Totals Project ci $ 40,000 136,000 196.000 $ 372,000 Project c2 $ 124,000 124,000 124,000 $ 372,000 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 (10) Project C2? 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.) LUPIELE S quesLUI UY ELE your ID WEIHILIE LOUD VEIUW. Required A Required B The company requires a 9% return from its investments. Compute net present values using factors from Table E Appendix B to determine which projects, if any, should be accepted. (Negative net present values should be indi minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar.) Project C1 Initial Investment Chart Values are Based on: i = % Year Cash Inflow PV Factor Present Value Year 1 Year 2 II II II Year 3 Project C2 Initial Innrtment Project C2 Cash Inflow X PV Factor 11 Present Value Initial Investment Year Year 1 Year 2 11 Year 3 = 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 ci $ 40,000 136,000 196,000 $ 372,000 Project C2 $ 124,000 124,000 124,000 $ 372,000 a. The company requires a 9% return from its investments. Compute net present values using factors from Table 8.1 in Appendix B 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 (10) Project C2? 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 Project C1 and () Project C2? (1) Is the internal rate of return higher or lower than 9% for Project C1? m) is the internal rate of return higher or lower than 9% for Project C2? Required A Required)
