Net present value method, Internal rate of return method, and analysis for a service company The management of Style Networks Inc. is considering two TV show projects. The estimated net cash flows from each project are as follows: Year After Hours Sun Fun 1 $320,000 $290,000 2 320,000 290,000 3 320,000 290,000 A 320,000 290,000 After Hours requires an investment of $913,600, while Sun Fun requires an investment of $880,730. No residual value is expected from either project. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 3 0,943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 1 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 B 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5,328 4.772 4,031 10 7.300 6.145 5.650 5.019 4.192 Required: 1a. Compute the net present value for each project. Use a rate of 10% and the present value of an annuity of $1 in the above table. If required, round to the nearest dollar. Present value of annual net cash flows After Hours Sun Fun Amount to be invested Net present value 1. Compte a present value index for each project. If required, round your answers to two decimal places Printem 2.673 2.487 2.402 2.201 2.105 4 3.465 3.170 3.037 2.855 2.589 .5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.80 4.564 4.160 3.605 B 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Required: 1a. Compute the net present value for each project. Use a rate of 10% and the present value of an armuity of $1 in the above table. If required, round to the nearest dollar. Sun Fun Present value of annual net cash flows Amount to be invested t Net present value After Hours 1b. Compute a present value index for each prejed. If required, round your answers to two decimal places. Present Value Index After Hours Sun Fun 2. Determine the internal rate of return for each project by (a) computing a present value factor for an annuity of $1 and (0) using the present value of an annuity of $3 table above. If requirest, round your present value fect answers to three decimal places and internal rate of return to the nearest percent. Present value factor for an annuity of $1 bnternal rate of retum After Hours 3. The present value, present value index, and intemal rate of return all indicate that the met the enum rebum orterion of 10% TV show is a better financial opportunity compared to the TV show, though they Previous Nee