Exercise 24-14 Computing and interpreting net present value and internal rate of return LO P3, P4 Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $330,000 and would yield the following annual cash flows. (PV of $1. FV of $1. PVA of $1. and FVA of $1] (Use appropriate factor(s) from the tables provided.) Year 1 Year 2 Year 3 Totals c1 $ 46,000 142,000 202,000 $390,000 C2 $130,000 130,000 130,000 $390,000 C3 $214,000 94,000 82,000 $390,000 1. Assume that the company requires a 8% return from its investments. Using net present value determine which projects, if any. should be acquired 2. Using the answer from part 1, is the internal rate of return higher or lower than 8% for Project C2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company requires a 8% return from its investments. Using net present value, determine which projects, I any, should be acquired. (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.) Project C1 Initial Investment $ 330,000 Chart Values are Based on: 8% PV Present Year Cash Inflow X Factor Value 46.000 x 0,0260 Assume that the company requires a 8% return from its investments. Using net present value, determine which projects, ir any, should be acquired. (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.) Project C1 Initial Investment $ 330,000 Chart Values are Based on: = 81% PV Year Cash Inflow X Present Factor Value 1 46,000 X 0.9260) = 2 142.000 x 3 202,000 Present value of cash inflows Present value of cash outflows Net present value 0 No Project C2 Initial Investment Year 330,000 PV Factor 0.9260 - Present Value 1 Cash Inflow X 130,000 130,000 130,000 X 2 3 Present value of cash inflows Present value of cash outflows 0 No Initial Investment Year Project C2 $ 330,000 PV Cash Inflow X Factor 130,000 0.9260) = 130.000 x 130,000 X Present Value 1 2 3 Present value of cash inflows Present value of cash outflows Net present value 0 Yes Initial Investment Year Project C3 $ 330,000 PV Cash Inflow X Factor 214.000 0.9260 94.000 x 82,000 x Present Value 1 2 3 Present value of cash inflows Present value of cash outflows Net present value 0