Project A: Costs $265,000 and offers seven annual net cash inflows of $56,000. Smith Products requires an annual return of 14% on investments of this nature. . Project B: Costs $385,000 and offers 9 annual net cash inflows of $76,000. Smith Products demands an annual return of 12% on investments of this nature. The IRR for each project is: Project A: Project B: 8-9% 9-10% 10-12% The IRR for each project is: Project A: Project B: 10-12% 9-10% 12-14% Present Value of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 Period 6 Period 7 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 12% 14% 15% 16% 18% 20% 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.797 0.769 0.756 0.743 0.718 0.694 0.971 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 0.609 0.579 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 0.516 0.482 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.567 0.519 0.497 0.476 0.437 0.402 Period 8 Period 9 Period 10 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.507 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.452 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 0.404 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.361 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.322 0.650 0.585 0.527 0.475 0.625 0.557 0.497 0.444 0.601 0.530 0.469 0.415 0.505 0.442 0.388 0.861 0.743 0.642 0.555 0.481 0.417 0.362 0.456 0.432 0.410 0.370 0.335 0.400 0.376 0.354 0.314 0.279 0.351 0.327 0.305 0.266 0.233 0.308 0.284 0.263 0.225 0.194 0.270 0.247 0.227 0.191 0.162 0.237 0.215 0.195 0.162 0.135 0.208 0.187 0.168 0.137 0.112 0.182 0.163 0.145 0.116 0.093 Period 11 0.896 0.804 0.722 Period 12 0.887 0.788 0.701 0.681 Period 13 0.879 0.773 0.429 0.388 0.350 0.287 0.397 0.356 0.319 0.257 0.326 0.290 0.229 0.299 0.263 0.205 0.160 0.141 0.125 0.099 0.078 0.315 0.275 0.239 0.183 0.140 0.123 0.108 0.084 0.065 0.368 0.340 Period 14 0.870 0.758 0.661 0.577 Period 15 Period 16 0.853 0.728 0.458 0.394 0.339 0.623 0.534 0.605 0.513 Period 17 0.844 0.714 0.436 0.371 0.317 0.350 0.296 0.292 0.252 0.218 0.163 0.123 0.107 0.093 0.071 0.054 0.270 0.231 0.198 0.146 0.108 0.093 0.080 0.060 0.045 0.250 0.212 0.180 0.130 0.232 0.194 0.164 0.116 Period 18 0.836 0.700 0.587 0.494 0.416 0.095 0.081 0.069 0.051 0.038 Period 19 0.828 0.686 0.570 0.475 0.396 0.331 0.277 0.083 0.070 0.060 0.043 0.031 Period 20 0.820 0.673 0.554 0.456 0.377 0.312 0.258 0.215 0.178 0.149 0.104 0.073 0.061 0.051 0.037 0.026 Present Value of Ordinary Annuity of $1 16% 18% 20% Periods 1% 2% 3% Period 1 0.990 0.980 0.971 Period 2 1.970 1.942 1.913 Period 3 2.941 2.884 2.829 Period 4 1.626 1.605 1.566 1.528 4% 5% 6% 7% 0.962.952 0.943 0.935 1.886 1.859 1.833 1.808 2.775 2.723 2.673 2.624 3.630 3.546 3.465 3.387 4.452 4.329 4.212 4.100 8% 9% 10% 12% 14% 15% 0.926 0.917 0.909 0.893 0.877 0.870 0.862 0.847 0.833 1.783 1.759 1.736 1.690 1.647 2.577 2.531 2.487 2.402 2.322 2.174 2.106 3.312 3.240 3.170 3.037 2.914 2.855 2.798 2.690 2.589 3.993 3.890 3.791 3.605 3.433 3.352 3.274 3.127 2.991 2.283 2.246 3.902 3.808 3.717 4.853 4.713 4.580 Period 5 Period 6 5.795 5.601 5.076 4,917 4.767 4.623 4.486 4.355 4.111 3.889 3.784 3.685 3.498 3.326 4.160 4.039 3.812 3.605 Period 7 6.728 6.472 Period 8 5.417 5.242 6.230 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.971 5.747 5.535 5.335 4.968 4.639 4.487 4.344 4.078 3.837 8.566 8.162 7.786 7.435 7.108 6.802 6.515 6.247 5.995 5.759 5.328 4.946 4.772 4.607 4.303 4.031 9.471 8.983 8.530 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.650 5.216 5.019 4,833 4.494 4.192 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 10.368 9.787 9.253 8.760 8.306 7.887 7.499 11.255 10.575 9.954 9.385 8.863 8.384 7.943 12.134 11.348 10,635 9.986 9.394 8.853 8.358 13.004 12.106 11.296 10.563 9.899 9.295 8.745 13.865 12.849 11.938 11.118 10.380 9.712 9.108 7.139 6.805 6.495 5.938 5.453 5.234 5.029 4.656 4.327 7.536 7.161 6.814 6.194 5.660 5.421 5.197 4.793 4.439 7.904 7.487 7.103 6.424 5.842 5.583 5.342 4.910 4.533 8.244 7.786 7.367 6.628 6.002 5.724 5.468 5.008 4,611 8.559 8.061 7.606 6.811 6.142 5.847 5.575 5.092 4.675 14.718 13.578 12.561 11.652 10.838 10.106 9.447 8.851 8.313 7.824 6.974 6.265 5.954 5.669 5.162 4.730 15.562 14.292 13.166 12.166 11.274 10.477 9.763 9.122 8.544 8.022 7.120 6.373 6.047 5.749 5.222 4.775 16.398 14.992 13.754 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7.250 6.467 6.128 5.818 5.273 4.812 17.226 15.678 14.324 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.366 6.550 6.198 5.877 5.316 4.844 18.046 16.351 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.469 6.623 6.259 5.929 5.353 4.870 Period 16 Period 17 Period 18 Period 19 Period 20