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 $320,000 320,000 320,000 320,000 Sun Fun $290,000 290,000 290,000 290,000 4 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 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 1.833 1.736 1.690 1.626 1.528 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 4.3554.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.2105.335 4.968 4.487 3.837 Check My Work Previous Next 4.917 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.1603.605 6.210 5.3354.9684.487 3.837 6.802 5.759 5.328 4.7724.031 10 7.360 6.145 5.650 5.019 4.192 7 9 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. After Hours Sun Fun Present value of annual net cash flows Amount to be invested Net present value 1b. Compute a present value index for each project. If required, round your answers to two decimal places. Present Value Index After Hours Sun Fun 2. Determine the intermal rate of return for each projlet by te) computing a present value faector for an annuity Check My Work Previous Next All work saved Email Instructor Save and Exit Submit Assignment for Grading 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. After Hours Sun Fun Present value of annual net cash flows Amount to be invested Net present value 1b. Compute a present value index for each project. 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 (b) using the present value of an annuity of $1 table above. If required, round your present value factor answers to three decimal places and internal rate of return to the nearest percent. After Hours Sun Furn Present value factor for an annuity of $1 Internal rate of return 3. The net present value, present value index, and internal rate of return all indicate that the Previous Next Check My Work All work saved. Email Instructor Save and Exit Submit Assignment for Grading