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please fill in blanks Phoentx Company IS constderng Investments In prqects Cl and Q Both require an lilltlal Investment of $222000 and would yreld the
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Phoentx Company IS constderng Investments In prqects Cl and Q Both require an lilltlal Investment of $222000 and would yreld the follpvang annual net cash flows. (PV of $1. FV of $1. PVA of and FVA of $1) Note: Use appropnate factor(s) from the tables provided. Year 1 Year 2 year 3 Tot. IS $ le,o le6,e 166, 282.e $ ga,eeo 94 94,eee 282,ee a- The company requlres a 12% return from Its Investments. Compute net present values ustng factors from Table Bl In AppendlX B to determlne whlCh proJects, f any. should be accepted. b- Ustng the answer from part a, IS the Internal rate of retum higher or lower than 12% for (1) Project Cl and (11) Project C2? Hnctt IS not necessary to compute IRR to answer th1S questlon. Complete this question by entering your answers in the tabs below. Required A Required B The company requires e 12% return from its investments, Compute net present values using factors from Table B.I in Appendix B to determine which projects, F any, should be accepted. Note; Negative net present values should be indiceted wlth a minus sign. Round your present value factor to 4 decimaisv Round your answers to the net-est whole daar; Show less Pr@ect Cl Year 2 Totals ProjectC2 Year 1 Yezr 2 Totals Net Cash Flows s 0 Vali* Net Cash Flows x Net Cash F Present Vaie Net Cash Flows s of 1 at 0 Vvhi:h projects. if -ny. shout Required A Requi B Using the answer from part E, is the internal rate of retum higher or lower than 12% for (i) Project Cl and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question. (O Is the internal rate of retum higher or lover than 12% for Project C 1? (iO Is the t'lternal rate of return Ngher or lmver than 12% for Project C2? Table B.I* PreentVa1ue ofl Periods 2 3 4 5 6 8 9 10 11 12 13 15 16 17 19 20 25 30 40 0.9901 0.903 0.9706 09610 0.9420 09327 0.9235 0.9143 0.963 ossu o.S7S7 o.S700 o.S613 o.sns o.S444 o.S360 0.077 o.S195 0.7419 0.7059 0.9804 0.9612 0.9423 0.923S 0.9057 o.ssso 0.006 0.535 o.S36S O_S203 o.S043 0.7730 0.759 0.7430 0.7002 0.6S64 0.6730 0.6095 0.5000 3% 0.9709 0.9426 0.9151 o.ssss 08626 08375 o.S131 0.7894 0.7664 0.7441 0.7224 0.7014 0.6810 0.6611 0.6419 0.6232 0.6050 0.5874 0.5703 0.5537 0.4776 0.4120 0.3066 4% 0.9615 0.9246 08890 0.8548 08219 0.7903 0.7599 07307 0.7026 0.6756 06496 0.6246 0.6006 0.5553 0.5339 0.5134 04936 0.4564 0.3083 0.2534 5% 09524 09070 o_S63S o.S227 0.705 0.7462 0.7107 0.6768 0.6446 0.6139 0.5303 0.45S1 0.4363 0369 0353 02314 0.1420 6% 0.9434 o_S900 0.8396 0.7921 0.7473 0.7050 0.6651 0.6274 05919 0.526S 0.4970 0.46SS 0.4423 0.4173 0.3936 0.3714 0.3503 0.3305 0.2330 0.1741 0.1301 Rate 7% 0.9346 0.8734 0.8163 0.7629 0.7130 0.6663 0.6227 0.5820 0.5439 0.50S3 0.4751 0.4440 o.ss;s 0.3624 0.33S7 0.3166 0.2959 0.2765 0.25S4 0.1S42 0.1314 0.0937 0.066S 8% 0.9259 0.8573 o. 793S 0.7350 06806 0.6302 0.5835 05403 0.5002 0.4632 04289 0*971 0.3677 0.3152 02919 02703 02502 0.2145 0.1460 00994 00676 0.0460 9% 0.9174 08417 0.7722 0.7084 0.6499 0.5963 0470 05019 0.4604 0.4224 0.3555 0.3262 02992 0.2519 02311 02120 0.1945 0.1160 0.0754 0.0490 0.9091 0.8264 0.7513 0.600 0.6209 0.5645 0.5132 0.4665 04241 o.3S55 0305 0.31" 02633 0.2394 02176 0.1799 0.1635 0.146 0.0923 0.0573 0.0356 0_0221 0.8929 0.7972 0.7118 0.6355 0.5674 0.5066 0.4523 0.4039 0.3606 0.3220 02567 0292 02046 0.1S27 0.1631 0.1456 0.1300 0.1161 0.1037 o_osss 0.0334 0.010 0.0107 0.8696 0.7561 0.6575 0.5718 0.4972 0.4323 0.3759 0.3269 02472 02149 0.1S69 0.1625 0.1413 0.1229 0.1069 0.0929 o.osos 00703 0.0611 0_0304 0.0075 0.0037 Periods 2 3 4 5 6 7 9 10 11 12 13 14 16 17 19 20 25 30 40 to compute tke pretent value ofa known future amount For example: How much wouldyou need to imest today ar 10% compounded semiannually to accumulate S', OOO in 6 year: and a :emtannuai rate Of 5%), the factor 0.556'. You would need to invest S2, today (SS, 000 x 0.556S).
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