work z/Test Mcknight Products is trying to decide which of the following projects to invest in: Project A costs $265,000 and offers seven annual net cash inflows of S62,000. Project B costs $380,000 and offers nine annual net cash inflows of $74,000, Compute the IRR of each project and use this information to identify the better investment. (Click the icon to view the present value annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value table.) First, compute the IRR of each project The IRR for Project Ais Reference 18% 0.847 1.566 2.174 2.690 3.127 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 Period 3 2.941 2884 2.829 2.775 2.723 2673 2.577 2.487 2.4022.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.5825.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.0206.733 6.463 6.210 5.747 5.335 4.9684.639 4.344 Period 9 8.566 8.1627.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.986 | 9.394 8.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12 106 11.296 10.563 9.899 9.295 8.244 1 7367 | 6.628 6.002 5.468 3.498 3.812 4.078 4.303 4.494 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.656 4.793 4.910 5.008 > 2.589 2.991 2.690 3.127 3.498 3.812 4.078 4.303 4.494 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 Period 5 4.853 4.713 4.580 4.452 4.3294212 3.9933.791 3.605 3.433 3.274 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.0025.786 5.5825.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.9684.639 4.344 Period 9 8.566 8.1627.786 7.4357.108 6.8026.247 5.759 5.328 4.946 4.607 Period 10 9.471 8.983 8.530 8.111 7.7227.360 6.710 6.145 5.6505.216 4.833 Period 11 10.368 9.787 9.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 Period 12 11.255 10.575 9.954 9.3858.863 8.384 7.536 6.814 6.1945.6605.197 Period 13 12.134 11.348 10.635 9.986 9.3948.853 7.904 7 103 6.424 5.842 5.342 Period 14 13.004 12.106 11.29610.563 9.899 9.2958.244 7.367 6.628 6,002 5.468 Period 15 13.865 12.849 11.938 11.11810.380 9.7128.559 7.606 6.811 6.142 5.575 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 Period 30 25 808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.244 7.105 6.233 4.656 4.793 4.910 5.008 5.092 5.353 5.467 5.517 5,548 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.870 4.948 4.979 4.997 Reference 20% Periods Period 1 Period 2 Period 3 Period 4 Period 5 16% 1.000 2. 160 3.506 5.066 6.877 18% 1.000 2 180 3.572 5215 7.154 1.000 2.200 3.640 5.368 7.442 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Future Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1,000 1.000 2010 2.020 2.030 2040 2.050 2.060 2080 2.100 2.120 3.030 3.060 3091 3.122 3.153 3.184 3.246 3.310 3.374 4.060 4.122 4.184 4246 4310 4 375 4.506 4641 4.779 5.101 5.204 5 309 5.416 5526 5.637 5 867 6.105 6.353 6.152 6.308 6.468 6.633 6.802 6.975 7336 7.716 8.115 7214 7434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9214 9.549 9.897 10.637 11.43612 300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10 950 11.464 12.006 12.578 13.181 14 48715.93717 549 11.567 12.16912808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.91716,870 18.977 21 384 24.133 13.809 14.68015618 16.627 17.71318 882 21.495 24.523 28.029 14 947 15.974 17.086 18292 19.599.21.015 24 215 27 975 32 393 14% 1.000 2.140 3.440 4.921 6.610 8.536 10.730 13.233 16.085 19.337 23.045 27 271 32 089 37581 8.977 11 414 14.240 17519 21.321 9.442 12.142 15.327 19.086 23.521 9.930 12916 16.499 20.799 25.959 25.733 30.850 36.786 43.672 28.755 34.931 42219 50.818 32.150 39.581 48.497 59.196 Period 4 Period 5 Period 6 Period 7 Period 8 Period 9 Period 10 Period 11 Period 12 Period 13 Period 14 Period 15 4,060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 5.101 5.204 5,309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7 154 7.442 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8. 115 8.536 8.977 9.442 9.930 7.214 7.434 7,662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8.286 8.583 8,892 9.214 9.549 9.897 10.637 11.436 | 12.300 13 233 14.240 15.327 16.499 9.369 9.755 10.159 10.583 11.027 11.491 | 12.488 13.579 14.776 16.085 17519 19.086 20.799 10.462 10.950 11.464 12.006 12.578 13 181 14.48715.937 17.549 19.337 21.321 23.521 25.959 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 23.045 25.733 28.755 32.150 12.683 13.412 14,192 15.026 15.917 16.870 18.977 21.384 24.133 27 271 30.850 34.931 39.581 13.809 14.680 15.618 16 627 17.713 18 882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.947 15.974 17.086 18 292 19.599 21.015 24 215 27.975 32. 393 37.581 43.672 50.818 59.196 16.097 17 293 18.599 20.024 21.579 23.276 27 152 31.772 37 280 43.842 51.660 60.965 72 035 22.019 24 297 26.870 29.778 33.066 36.786 45.762 57 27572052 91.025 115 380 146.628 186.688 28.243 3203036.459 41.646 47.72754.865 73.106 98.347 133.334 181.871 249 214 342.603 471 981 34 785 40.568 47,575 56.085 66.43979.058 113.283 164 494 241.333 356.787 530.312 790,948 1,181.882 48 886 60.402 75.401 95026 120.800 154 762 259.057 442.593 767091 1,342 025 2,360 757 4.163 213 7 343.858 Period 20 Period 25 Period 30 Period 40 Reference Present Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 0.9800.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.7430.7180.694 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.6090.579 Period 4 0.961 0.924 0.888 0.855 0.8230.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 Period 7 0.933 0.871 0.813 0.7600.7110.665 0.583 0.513 0.452 0.400 0.354 0.3140.279 Period 8 0.923 0.853 0.789 0.731 0.677 0.6270.540 0.467 0.404 0.3510.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.7440.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 Period 110.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.1950.162 0.135 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 X Reference Period 4 0.961 0.924 0.888 0.855 0.8230.7920735 0.683 0.636 0.592 0.552 0516 0.482 Period 5 0.951 0.906 0.863 0.822 0.784 0.747 0681 0.621 0.567 0.519 0.476 0.437 0.402 Period 6 0.942 0.888 0.837 0.790 0.746 0.705 0 630 0.564 0.507 0.456 0.4100 370 0.335 Period 7 0.933 0.871 0.813 0.7600.7110.665 0.583 0.513 0.4520.400 0.354 0.314 0.279 Period 8 0.923 0.853 0.789 0.731 0677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 Period 9 0.914 0.837 0.766 0.703 0.6450.5920.500 0.424 0.361 0.308 0.263 0.225 0.194 Period 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.1910.162 Period 11 0.896 0.8040.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 Period 12 0.887 0.788 | 0.701 0.625 0.557 0.4970397 0.319 0.26 0.208 0.168 0.137 0.1 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 Period 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0,555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0,084 0.065 Period 200.820 0.673 0.5540.456 0.377 0.312 0215 0.149 0.104 0.073 0.051 0.037 0.026 Period 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.0160.010 Period 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.0200.012 0.007 0.004 Period 400.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.0110.005 0.003 0.001 0.001 1 Reference Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 1.062 1,072 1,083 1.094 1.105 2% 1.020 1.040 1.061 1.082 1.104 3% 1.030 1.061 1.093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1360 1.338 1.469 10% 1.100 1210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1811 2.100 18% 1.180 1.392 1.643 1.939 2 288 20% 1.200 1.440 1.728 2.074 2.488 Period 6 Period 7 Period 8 Period 9 Period 10 1.126 1.149 1.172 1.195 1219 1.194 1.230 1.267 1.305 1 344 1.265 1.316 1 369 1.423 1.480 1.340 1.407 1.477 1551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1851 1.999 2.159 1.772 1.974 1.949 2211 2.144 2.476 2.358 2.773 2.594 3.106 2 853 3.479 3.138 3.896 3.452 4.363 3.797 4.887 2.195 2.502 2.853 3.252 3.707 2436 2.826 3.278 3.803 4411 2.700 3.185 3.759 4.435 5.234 6.176 7.288 8.599 10.147 2.986 3.583 4.300 5.160 6.192 Period 11 Period 12 Period 13 Period 14 1.116 1.127 1.138 1.149 1.243 1268 1 294 1319 1.384 1.426 1.469 1513 1.539 1.601 1.665 1.732 1.710 1.796 1.886 1980 1 898 2012 2.133 2.261 2.332 2518 2.720 2937 4.226 4.818 5.492 6.261 5.117 5.936 6 886 7988 7.430 8.916 10.699 12 839