Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $300,000 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 $ 36,000 $ 120,000 Year 2 132,000 120,000 Year 3 192,000 120,000 Totals $ 360,000 $ 360,000 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	x	Present Value of 1 at 9%	=	Present Value of Net Cash Flows
Year 1		x		=
Year 2		x		=
Year 3		x		=
Totals
Project C2	Net Cash Flows	x	Present Value of 1 at 9%	=	Present Value of Net Cash Flows
Year 1		x		=
Year 2		x		=
Year 3		x		=
Totals
Which projects, if any, should be accepted