Required ARequired BThe company requires a 8% return from its investments. Compute net present values using factors from Table B.1 inAppendix B to determine which projects, if any, should be accepted. (Negative net present values should be indicated with aminus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar)Project C1Year 1Year 2Year 3TotalsProject C2Year 1Year 2Year 3TotalsNet Cash Flows$$Net Cash Flows$44,000 x140,000 x200,000 x384,000Which projects, if any, should be acceptedShow Transcribed Textx0XPresent Valueof 1 at 8%Present Valueof 1 at 8%ĴPresent Value ofNet Cash Flows() is the internal rate of retum higher or lower than 8% for Project C17() is the internal rate of return higher or lower than 8% for Project C27< Required APresent Value ofNet Cash Flowsa. The company requires a 8% return from its investments. Compute net present values using factors from Table B.1 in Appendix 8 todetermine which projects, if any, should be accepted.b. Using the answer from part a, is the internal rate of return higher or lower than 8% for () Project C1 and (i) Project C2? Hint: It is notnecessary to compute IRR to answer this question.Complete this question by entering your answers in the tabs below.Required A Required BUsing the answer from part a, is the internal rate of return higher or lower than 8% for (0) Project C1 and (1) ProjectC27 Hint: It is not necessary to compute IRR to answer this question Exercise 24-18 (Algo) Net present value, unequal cash flows, and internal rate of return LO P3, P4Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment of $324,000 and would yield thefollowing annual net cash flows. (PV of $1. EV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided.)Net cash flowsYear 1Year 2Year 3TotalsProject C1$ 44,000140,000200,000$384,000Project C2$ 128,000128,000128,000$ 384,000a. The company requires a 8% return from its investments. Compute net present values using factors from Table B.1 in Appendix B todetermine which projects, if any, should be accepted.b. Using the answer from part a, is the internal rate of return higher or lower than 8% for (1) Project C1 and (ii) Project C2? Hint: It is notnecessary to compute IRR to answer this question.Complete this question by entering your answers in the tabs below.Proiect C1Required A Required BThe company requires a 8% return from its investments. Compute net present values using factors from Table 8.1 inAppendix B to determine which, projects, if any, should be accepted. (Negative net present values should be indicated with aminus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar)Present Value ofNet Cash Flows x Present Value

The present value is the concept wherein the future cash flows are discounted at a specified…

The company requires a 8% return from its investments. Compute net present values using factors from Table 8.1 in Appendix B to determine which projects, if any, should be accepted. (Negative net present values should be indicated minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar) Project C1 Year 1 Year 2 Year 3 Totals Project C2 Year 1 Year 2 Year 3 Totals Net Cash Flows $ $ 44,000 x 140,000 x 200,000 x 384,000 Net Cash Flows 0 Present Value of 1 at 8% Present Value of 1 at 8% Present Value of Net Cash Flows Present Value of Net Cash Flows

The company requires a 8% return from its investments. Compute net present values using factors from Table 8.1 in Appendix B to determine which projects, if any, should be accepted. (Negative net present values should be indicated minus sign. Round your present value factor to 4 decimals. Round your answers to the nearest whole dollar) Project C1 Year 1 Year 2 Year 3 Totals Project C2 Year 1 Year 2 Year 3 Totals Net Cash Flows $ $ 44,000 x 140,000 x 200,000 x 384,000 Net Cash Flows 0 Present Value of 1 at 8% Present Value of 1 at 8% Present Value of Net Cash Flows Present Value of Net Cash Flows

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter10: Capital Budgeting: Decision Criteria And Real Option

Section: Chapter Questions

Problem 21P

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ch A project with an initial investment of $88000 and a profitability index of 1.239 also has an internal rate of return of 12%. The present value of net cash flows is O $71025. O $98560. O $88000. O $109032. Save for Later O Et V B 21 E 7 Attempts: 0 of 1 used Submit Answer F12
Question Compute the IRR statistic for Project A and note whether the firm should accept or reject the project with the cash flows shown below if the appropriate cost of capital is 12 %. Time 1 2 3 4 5 Cash Flow ($92,000$42.999 $45,668 $38,554 $36,778 $47,000 O The project's IRR is 36.3 % and the project should be accepted. O The project's IRR is 65.5 % and the project should be accepted. O The project's IRR is 23.9 % and the project should be rejected.. O The project's IRR is 43.2 % and the project should be accepted.
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