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Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each...

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Accounting

Phoenix Company can invest in each of three cheese-making projects: C1, C2, and C3. Each project requires an initial investment of $294,000 and would yield the following annual cash flows. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.)

C1 C2 C3
Year 1 $ 34,000 $ 118,000 $ 202,000
Year 2 130,000 118,000 82,000
Year 3 190,000 118,000 70,000
Totals $ 354,000 $ 354,000 $ 354,000

(1) Assume that the company requires a 9% return from its investments. Using net present value, determine which projects, if any, should be acquired. (Negative net present values should be indicated with a minus sign. Round your answers to the nearest whole dollar.) image

Initial Investment Year Cash inflow x Table factor= Present Value 2 0

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