Question: 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

 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

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 $294,000 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 ci $ 34,000 130,000 190,000 5354.000 C2 $118.000 118,000 118,000 $354,000 c3 $ 202,000 82,000 70,000 $354.000 1. Assume that the company requires a 9% 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 9% for Project C2? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Assume that the company requires a 9% return from its investments. Using net present value, determine which projects, it 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 Chart Values are Based on % Year Cash Inflow PV Factor Present Value 1 2 3 X Assume that the company requires a 9% return from its investments. Using net present value, determine which p any, should be acquired. (Negative net present values should be indicated with a minus sign. Round your present to 4 decimals. Round your answers to the nearest whole dollar.) Project C1 Initial Investment Chart Values ar Based on % Year Cash Inflow K PV Factor 1 2 3 Proxent Value Project C2 Initial Investment Year Cash Inflow 1 * PV Factor Present Value 2 3 Project C3 Initial Investment Year Cash Inflow 1 2 PV Factor Present Value Required 2 > Exercise 24-14 Computing and interpreting net present value and interna Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each pr- $294.000 and would yield the following annual cash flows. (PV of $1. FV of $1. PVA of $1. and F from the tables provided.) Year 1 Year 2 Year 3 Totals ci $ 34,000 130,000 190,000 $354,000 c2 $118,000 118,000 118,000 $354,000 C3 $ 202,000 82,000 70,000 $ 354,000 1. Assume that the company requires a 9% return from its investments. Using net present value, should be acquired. 2. Using the answer from part 1, is the internal rate of return higher or lower than 9% for Project Complete this question by entering your answers in the tabs below. Required 1 Required 2 Using the answer from part 1, is the internal rate of return higher or lower than 9% for Project C2? is the internal rate of return higher or lower than 9% for Project C2? MacBook Air

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