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Netent Value Method, Internal Rate of Retum Method, and Analysis The management of Heckel Communications Inc. is considering two capital investment projects. The estimated cash flows from each project are as follows: Year Radio Station TV Station 1 5560.000 $120,000 560.000 13120,000 1.120,000 3 560,000 560,000 1,120,000 Present Value of an Annuity of $1 * Compound Interest Year 696 10% 15 20 0.943 0.900 0.893 0870 0.833 1.833 1.236 1.690 1.626 1.528 2.573 2.487 2.402 2.283 2.106 3:170 3.037 2,855 2.50 3.791 3.605 3.353 2.99 4.355 1785 3.325 5.502 4.366 4.160 3.605 6210 4.457 3.137 5,392 5.759 4.772 4.DE 10 7,360 1.145 5.550 5.09 192 CM www TV W RES TV het runt Method, tratate fetus Method, and a The management of Heer Content that comes Year Station TV station 1 550.000 31.120.000 3 560,000 560.000 300.000 1,120.000 3,120,000 20,000 Present Value of any of Compound interest Year 11 12 WI 2014 293 0.17 0.833 2 1003 1. 1.52 2:57 243 2403 20 3.463 3.10 3.017 E 5 LAS 3.333 2 LE 333 4.554 C10 2005 ote 4.4 3.837 O 10 3.450 then.... Hequired TV SER BO 5019 12 M Prende Red Radio Station TV Net Present Value Method, Internal Rate of Return Method, and Analysis The management of Hecket Communications Inc. is considering two capital investment projects. The estimated net cash flows from each project are as follows: Year Radio Station TV Station 1 $560,000 $1,120,000 1,120,000 2 560,000 560,000 3 1,120,000 1,120,000 4 560,000 Present Value of an Annuity of $1 at Compound Interest Year 10% 12% 159 20% 0.909 0.893 0.870 0.833 0.943 1.833 2 1.736 1.626 1.528 1.690 2.402 2.482 2.253 2.106 2.673 3.465 4 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 4.360 4.100 3.605 5,562 6.210 5.335 4.968 4.487 3.537 4.031 9 6.802 5.759 5.320 4.772 10 7.360 6.145 5.650 5.019 4.192 The radio station requires an investment of $1,598,800, while the TV station requires an investment of 53.401,440. No residual value is expected from other project Required: 16. Compute the net present value for each project. Use a rute of 10% and the prezane value of an annuity or st in the table bove. If the pet present value is negative, entera Radio Station TV Station Present value of annual net cash flows Amount to be invested Net present Value 6.210 5.335 4.968 4.487 3.83 9 6.102 5.759 5.328 4.272 4.031 10 7.360 6.145 5.650 5.019 4.192 The radio station requires an investment of $1,598,800, while the TV station requires an investment of $3,401.440. No residual value is expected from the project Required: in compute the net presere value for each project. Use a rate of tow and the present yanse of an annuity of st in the table above. If the net present vatue la negative, arter a regative amount Radio Station TV station Present value of annual ner cash rows Amount to be invested Net present value 1h. Compute sont value index for each project. Round your answers to two decimal places Present Value Index (Rounded) Radio Station TV Station 2. Determine the internal rate of return for each project by (o) computing a present value factor for an annuity of and (by using the present value of an annuity of 51 table above. Rreth Radio Station TV Station (a). Present value factor for an annuity of 1 D). Internal rate of return