TIL lest: Exam 5 Question 16 Consider the following projects being considered by McKnight Products (Click the icon to view the projects.) (Click the icon to view Present Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) Compute the IRR of each project, and use this information to identify the better investment - The IRR for each project is Project A More Info Project B is the better investment Project A Costs $295 000 and offers seven annual net cash inflows of $57,000. McKnight Products requires an annual return of 16% on investments of this nature Project B. Costs $370.000 and offers 10 annual net cash inflows of $71.000 McKnight Products demands an annual return of 14% on investments of this nature Print Done Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18 Period 10.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.8620. Period 20.980 0.961 0.943 0.925 0.9070.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.7 Period 30.971 0 942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.712 0.675 0.658 0.641 0.6 Period 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.636 0.592 0.572 0.552 0.5 Period 5 0 951 0.906 0,863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0567 0.5190.497 0.476 0.4 Period 60.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0 596 0.564 0.5070.456 0.432 0.410 0.3 Period 7 0.933 0.8710.813 0.760 0.711 0.665 0.623 0.5830.5470.513 0.452 0.400 0.376 0.354 0.3 Period 8 0.923 0 853 0.789 0.731 0.677 0.627 0,582 0.540 0.502 0.467 0.4040.351 0.3270.305 0.26 Period 9 0.914 0.837 0.766 0.703 0.645 0.592 0,544 0.500 0.460 0.424 0.361 0.308 0.284 0.263 0.22 Period 0.905 0 820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0 322 0.270 0.247 0.227 0.19 10 Period 110.896 0 8040.722 0.650 0.585 0.527 0.475 0.429 0.388 0.350 0.2870 237 0.215 0.1950.16 Period 0.887 0.788 0.701 0.625 0 557 0.497 0.4440.3970 356 0 319 0.257 0.208 0.1870.168 0.13 12 Period 0.879 0.773 0.681 0.601 0.530 0.469 0.415 0.368 0.326 0.290 0.229 0.182 0.163 0.145 0.11 113 Period 0.870 0.758 0.661 0.5770.505 0.442 0.3880 340 0.299 0.263 0.205 0.1600.141 0.125 0.099 14 Period 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0315 0.275 0 239 0.183 0.140 0.123 0.1080084 15 Period 0.853 0.728 0.623 0.534 0.458 0.394 0.3390.292 0252 0.218 0.163 0.123 0.10710.093 0.071 16 Period 0.844 0.714 0.605 0.513 0.436 0.371 0.317 0.270.0.231 0.1980.146 0.108 0.093 0.080 0.060 17 Period 0.836 0.7000.587 0.494 0.416 0.350 0.296 0.250 0 21210.180 0.130 0.095 0.081 0.069 0.051 18 Period 0.828 0 686 0.570 0.475 0.396 0 331 0.277 0232 0.194 0.164 0.116 0.083 0.070 0.060 0.043 19 Period 0.820 0.673 0.554 0.456 0.3770.312 0258 0215 0.178 0.149 0.10400730.061 0.051 0.037 20 Period 0 811 0.660 05380 439 0.359 0.294 0 242 0.1990 1640.135 0.093 0.064 0.0530.0440031 21 Period 0.803 0.647 0.522 0.422 0342 02780226 0,184 0,1500 1230.0830.056 0.046 0.0380 026 5% Present Value of Ordinary Annuity of $1 Periods 1% 2% 3% 4% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20 Period 1 0.990 0.980 0.971 0.962 0.952 0.94301935 0.926 0.917 0.909 0.893708770.870 0.862 0.847 0.8 Period 2 1.970 1.942 1913 1.886 1859 1 833 1808 1.783 1759 1.736 1.690 1.647 1626 1605 1.566 1.5 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.624 2 577 2.531 2 487 2 402 2.322 2 283 2 246 2.174 2.1 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.037 2 914 2.855 2.798 2690 258 Period 5 4.853 4.7134.580 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.605 3.433 3.352 3 274 3 1272.99 Period 6 5.795 5.601 5.417 5242 5.076 4.917 4.767 4.623 4.486 4355 4. 1113 889 3.784 3.685 3.498 3.32 Period 7 6.728 6 472 6.230 6002 5.786 5.582 5.389 5.206 5,033 4.868 4.564 4288 4.160 4.0393 8123.60 Period 8 7 652 7 325 7020 6.7336.463 6.210 5.971 5.747 5.535 5.335 4968 4 639 4.487 4.344 4078 3.83 Period 9 8 566 8.162 7 786 7.435 7 108 6.802 6.515 6.247 5.995 5.759 5.328 4 946 4772 46074 3034 03 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.6505.216 5019 4833 4 4944 19 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.499 7 139 6 805 6.495 5.938 5.453 5 234 5 029 4656 4 327 Period 12 11.255 10.575 9 954 9 385 8.863 8.384 7 943 7.536 7. 161 6 814 6.194 5.660 5.421 5.197 4.793 4.439 Period 1312.134 11 34810.635 9986 9.394 8.853 8 3587 904 7.487 7. 103 6.424 5.842 5583 5 342 4.910 4.533 Period 1413.00412 106 11.296 10.563 9.899 9.295 8.745 8.2447.786 7 3676.628 6.002 5.724 5.468 5.0084.611 Period 1513.86512.849 11.938 11.11810.380 9.712 9.108 8.5598,061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 Period 16 14.718 13.578 12.561 11.652 10 838 10.100 9.447 8.851 8.3137 824 6.97416.265 5.9545.669 5.162 4.730 Period 1715.562 14.292 13.166 12.16611 27410.477 9.763 9.122 8,544 8.022 7 120 6 373 6047 5.749 5222 4.775 Period 18 16.398 14.992 13.75412.659 11.69010,828 10.059 9.372 8.756 8 2017 250 6.467 6.128 5.818 5.273 4812 Period 1917 22615 678 14.324 13.1341208511 15810.336 9.6048.950 8.365 7.366 6.550 6.198 5.877 5.3164.844 Period 2018.046 16.351 14 877 13.590 12.462 11.470 10.594 9.818 9.129 8.51474696.623 6.259 5.9295.353 4.870 Period 2118.857 17 01115.415 14.02912 821 11.764 10.836 10 017 9.2928.6497.562 6.687 6.312 5.973 5.3844.891 Period 22 19.660 17 658 15.937 14.45113 163 12.042 11.061 10 201 9.442 8.7727.645 6.743 6.359 6.011 5.410 4 909 Period 2320.456 18.292 16.444 14.85713.48912.303 11 272 10.371 9.5808.8837.718 16.792 6.399 6.044 5.432 4.925 Period 2421 24318.914 16.936 15 247 13.7991255011 469 10.529 9.707 8.985 7.784 6.835 6.4346.073 5.451 4.937 Period 2522 023 19.523 17.41315.622 14.09412.783 11.654 10 675 9.8239.077 7.843 6 873 6.464 6.097 5.467 4.948 Period 2622.795|20.12117 877 15 983 14 37513.003 11.826 10 810 9.929 9. 1617.8966.906 6.491 6.118 5.480 4.956 Period 2723.56020.707 18.327 16.33014 643 13.21111.987 10 935 10 027 9.237 7 943 6.935 6514 6.136 5.4924964 Period 2824 316 21.28118.764 16.66314 89813.406 12.13711051 10.116 9.3077.9846.961 6.534 6.152 5.502 4 970 Period 2925.06621.844 19 188 16.984 15.14113.591 12 278 11.158 10,198 9.3708.022 6.983 6.551 6.166 5.510 4.975 Period 3025.80822.396 19.600 17 292 15 37213.769 12 40911 258 10.274 9.4278.0557.003 6.566 6.1775.517 4979 Period 40 32 835 27.355 23.115 19.79317.15915.046 13.332 11.92510 757 9 7798.244 7.105 6.642 6.233 5 548 4.997 Period 50 39,196 31.42425.730 21.48218256/15.76213 801 12.233 10.962 9.915 8.304 Z.133 6.661 6.246 5 554 4999 Print Done