16. A proposed project will require an initial investment of $1,000,000 and will generate net operating cash inflows of $250,000 per year for five years. What is the internal rate of return? Present Value of $1 Periods 4% 5% 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 2 0 .025 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.855 0.823 0.792 0.763 0735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.822 0.784 0,747 0.713 0681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 6 7 8 9 10 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.700 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0.425 0.400 0.378 0.731 0.677 0,627 0.582 0.540 0.502 0.467 0.434 0.404 0.376 0.351 0.327 0.703 0.645 0.502 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0,676 0.814 0.558 0,508 0.463 0.422 0.388 0.352 0.322 0.295 0.270 0.247 12 0.650 0.585 0.527 0.475 0.429 0.388 0 350 0.317 0.287 0.261 0237 0215 0.625 0 567 0.497 0444 0.397 0.356 0.319 0.286 0 257 0.231 0 208 0.187 0.601 0.530 0.469 0.415 0.368 0.328 0.290 0.258 0.229 0.204 0.182 0.163 0.577 0.505 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.555 0.481 0.417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 14 15 resent Value of an Annuity of $1 % 5% 6% 7% 1 0 .962 0.952 0.943 0.935 1.886 1.859 1.833 1,808 2.775 2.723 2.673 2.624 3.630 3.546 3.465 3.387 4.452 4.329 4.212 4.100 2 8% 0.926 1.783 2.577 3.312 3.993 9% 10% 11% 12% 13% 14% 15% 0.917 0.909 0.901 0.893 0.885 0.877 0.870 1.759 1.736 1.713 1.690 1.668 1.647 1.626 2.531 2.487 2.444 2.402 2361 2.322 2283 3.240 3.170 3.102 3.037 2.974 2.914 2.856 3.890 3.791 3.696 3.605 3.517 3.433 3.362 7 8 6 6 5.242 .002 .733 7.435 .111 5.076 5.786 6.463 7.108 7.722 4.917 5,582 6.210 6 802 7.360 4.767 5.389 5.971 6,515 7.024 4.623 5.206 5.747 6.247 6.710 4.486 4,355 4 231 4.111 3.998 3.889 3.784 5.033 4,868 4.712 4.564 4.423 4.288 4.160 5,535 5.335 5.146 4.968 4.799 4.639 4.487 5.995 5.759 5.537 5328 5.132 4.946 4.772 6.418 6.145 5.889 5.650 5.426 5.216 5.019 10 8 15 12 13 8.780 3.306 9.385 3.863 9.986 9394 10.563 9.899 11.118 10.380 7.887 8.384 8.853 0.295 9.712 7499 7.943 8,358 8.745 9.108 7.139 7.536 7.904 8.244 8.559 6.805 6.495 6.207 5.938 5.687 5.453 5.234 7.161 6.814 6.492 6.194 5.918 5.660 5.421 7 487 7.103 6.750 6.424 6.122 5.842 5,583 7.786 7.367 6.982 6,628 6.302 6.002 5.724 8.061 7.806 7.191 6.811 6.462 6.142 5.847 15 a. Less than 9% b. 11% c. 13% d. Over 15%