Exercise 26-18 Net present value, unequal cash flows, and internal rate of return P3 P4 Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $228,000 and would yield the following annual net cash flows. Not cash flows Project C1 Project C2 Year 1........ $ 12,000 $ 96,000 108,000 96,000 168,000 96,000 $288,000 $288,000 Year 2 Year 3 Totals...... a. The company requires a 12% 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 12% for (i) Project C1 and (ii) Project C2? Hint: It is not necessary to compute IRR to answer this