Print Item Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Quest Media Inc. is considering twe capital investment projects. The estimated net cash flows from each project are as follows: Year Radio Station $370,000 370,000 TV Station $740,000 740,000 Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.463 3.170 3.037 2.855 2.589 3.791 3.605 6 4.917 4.355 4.111 3.784 3.326 7 5.582 4.868 464 4.1603.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.3284.772 4.031 10 7.360 6.145 5.650 5.019 4.192 The radio station requires an investment of $1,123,690, while the TV station requires an investment of $2.112,700. No residual valus is expected from either project. death negative net present value frequ re la compute the net present value or each pro ect. Use a ate of 10% and the present val e o an annuity o si the table asove nearest whole dollar required use the und to the us s gn to TV Station Radio Station Previous Next Check My Work 10 more Check My Work uses remaining for Grading Save and Exit All work saved PM ^ eBook Print Item 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 The radio station requires an investment of $1,123,690, vwhile the TV station requires an investment of $2,112.700. No residual value is expected from either project. Required: la, Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the table above if reque use the minus sign to indicate a negative net present value. If required, round to the nearest whole dollar Radio Station TV Station Present value of annual net cash flows Less amount to be invested Net present value 1b. Campute a present value index for each project. If required, round your answers to two decimal places Present Value Index Radio Station TV Station 2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (b) using the present value of an annuity of $1 in the table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest whole percent. Radio Station TV Station Present value factor for an annuity of 51 Internal rate of return 3. The net present value, present value index, and internal rate of return all indicate that the minimum return criterion of 10%. is a better financial opportunity compared to the although both investments mest the Previous Next Check My Work 10 more Check My Work uses remaning Seve and Exit Submit Assignmant for Grading All work saved 5/7/2019 2