Computation and interpretation of net present value and internal rate of return P3 P4

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $228,000 and would yield the following annual cash flows.

...........................................................................C1...................................C2.........................C3

Year 1.............................................................$....12,000.........................96,000................180,000

Year 2.................................................................108,000..........................96,000..................96,000

Year 3..................................................................168,000..........................96,000...................48,000

............................................TOTAL.................$288,000...........................$288,000...............$288,000