Exercise 24-18 (Algo) Net present value, unequal cash flows, and internal rate of return LO P3, P4

Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $306,000 and would yield the following annual net cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

Net cash flows	Project C1	Project C2
Year 1	$ 38,000	$ 122,000
Year 2	134,000	122,000
Year 3	194,000	122,000
Totals	$ 366,000	$ 366,000

a. The company requires a 9% 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 internal rate of return higher or lower than 9% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this question.

PLEASE ANSWER BOTH PARTS. I WILL COMMENT AND VOTE