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