Exercise $11-18($Algo$)$ Net present value, unequal cash flows, and internal rate of return LO P$3,$ P$4$

Phoenix Company is considering investments in projects C$1$ and C$2.$ Both require an initial investment of $$246,000$ and would yield

the following annual net cash flows. $($PV of $$1,FV$ of $$1,$PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

a$.$ The company requires a $10\%$ return from its investments. Compute net present values using factors from Table B$.1$ in Appendix B

to determine which projects, if any, should be accepted.

b$.$ Using the answer from part a$,$ is the intemal rate of return higher or lower than $10\%$ for $($i$)$ Project C$1$ and $($ii$)$ Project C$2?$ Hint:$-$It is

not necessary to compute IRR to answer this question.

Complete this question by entering your answers in the tabs below.

The company requires a $10\%$ return from its investments. Compute net present values using factors from Table B$.1$ in

Appendix B to determine which projects, if any, should be accepted.

Note: Negative net present values should be indicated with a minus sign. Round your present value factor to $4$ decimals.

Round your answers to the nearest whole dollar.

Using the answer from part $a,$ is the internal rate of return higher or lower than $10\%$ for $($i$)$ Project $C1$ and $($ii$)$ Project

C$2?$ Hint: It is not necessary to compute IRR to answer this question.

$($i$)$ Is the internal rate of return higher or lower than $10\%$ for Project C$1?$

$($ii$)$ Is the internal rate of return higher or lower than $10\%$ for Project C$2?$Exercise $11-18($Algo$)$ Net present value, unequal cash flows, and internal rate of return LO P$3,$ P$4$

Phoenix Company is considering investments in projects C$1$ and C$2.$ Both require an initial investment of $$246,000$ and would yield the following annual net cash flows. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Net cash flows Project C$1$ Project C$2$

Year $1$ $ $18,000$ $ $102,000$

Year $2114,000102,000$

Year $3174,000102,000$

Totals $ $306,000$ $ $306,000$

The company requires a $10\%$ return from its investments. Compute net present values using factors from Table B$\mathrm{.}1$ in Appendix B to determine which projects, if any, should be accepted.

Using the answer from part a$,$ is the internal rate of return higher or lower than $10\%$ for $($i$)$ Project C$1$ and $($ii$)$ Project C$2?$ Hint: It is not necessary to compute IRR to answer this question.