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A company is considering investing in a new machine that requires a cash payment of $43,158 today. The machine will generate annual cash flows of

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A company is considering investing in a new machine that requires a cash payment of $43,158 today. The machine will generate annual cash flows of $17,050 for the next three years. What is the internal rate of return if the company buys this machine? (PV of $1, FV of $1. PVA of $1, and FVA of $1 (Use appropriate factor(s) from the tables provided.) Amount Invested 0 Annual Net Cash Flow - Present Value Factor Internal Rate of Return TABLE B.15 Present Value of 1 p=1/(1 + ir Bate 92% 10% 12% 15% 0.8695 0.7561 0.6575 0.4323 0.3759 0.3269 02843 0.9901 0.9803 0.9706 0.9610 09515 00420 0.9327 0.9235 0.9143 09053 0.8963 08874 0.8787 0.8700 08613 0.8528 03444 0.8360 0.8277 0.8195 0.7798 07419 07059 0.6717 09804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.9091 08929 0.9612 0.9426 0.9246 0.9070 0.8900 0.8734 08573 0.8417 0.8264 0.7972 0.9423 0.9151 08890 08538 0.8396 0.8163 0.7939 0.7722 0.7513 0.7118 0.9238 0.88850.8548 0.8227 0.7921 0.76290 .7350 0.7084 0.6830 0.6355 09057 08526 03219 07875 0.7473 07130 0.6806 0.5499 0.8880 0.8375 0.7903 0.7462 0.7050 06663 06302 0.5963 0.56450.5066 0.8706 0.8131 0.7599 0.7107 0.6651 0.6227 0.5835 0.5470 0.5132 0.4523 08535 0.7894 0.7307 0.6768 0.6274 0.5820 0.5403 05019 0.4665 0.40.39 0.8358 0.7664 0.7026 0.6446 0.5919 05439050020660404241 07606 08203 07441 06756 05139554 3 025 02 5 02 0.8043 0.7224 0.6496 0.5847 0.5268 0.4751 0.4289 0.3875 0.3505 0.2875 0.7885 0.7014 06246 0.5568 0.4970 0 4440 0.3971 0.3555 013186 02567 0.7730 0.6810 0.6006 0.5303 0.4688 0.4150 0.3677 0.3262 0.2897 0.2292 0.7579 0.6611 0.5775 0.5051 0.4423 0.3878 0.3405 0.2992 0.2633 0.2045 0.7430 0.5419 05553 0 4810 04173 07524 031520 2755 02094 01827 07284 0623205399 0.4581 0.39350387 02919 02519 02176 0.1631 071420 6050 05134 0406203714 0.3166 0270) 0 2311 0.1978 0.14 0.7002 0.5874 0.4936 0.4155 0.3503 0.2959 0.2502 0.2120 0.1799 0.1300 0.6864 05703 04746 0.3957 0.3305 0.2765 0.2317 0 .1945 0.1635 0.1161 0.6730 05537 0.4564 0.3769 0.31180 2584 02145 0 1784 01435 0.1007 05095 0.4776 03751 0.2953 0.2330 0.1842 014500 1160 00920 00 05521 041200108302314 0.1741 0.1314 0099400754 005 00234 0 5000 0.3554 0.2534 0.1813 01301 0.0937 0.0676 0.0490 0.0356 00189 0.4529 0.3066 0 .2083 0.1420 0.0972 0.0668 0.0460 0.0318 0.0221 0.0107 0.2149 0.1959 0.1625 0.1413 01229 0.1069 0.0929 0.0808 0.0703 00611 00300 00151 0.0075 0.0037 20 you w ody n years Used to competenc de e 17 and 2 rele: How much nd compone you to MacBook Pro 14 | 5 | 6 | NU TABLE B.2 Future Value of 1 f= (1 + i)" Rate Periods 1% 2% 3% 6% 8% 9% 10% 12% 15% 11 1.0000 1.0000 1.0000 1.0100 1.0200 1.0300 1.0201 1.0404 1.0609 1.030310612 1.0927 1.0406 1.0824 1.1255 1.0510 1.1041 1.1593 1.0615 1.1262 1.1941 1.0721 1.1487 1.2299 1.0829 1.1717 1.2668 1.0937 1.1951 1.3048 1.1046 1.21901.3439 1.115712434 1.3842 1.1268 1.2682 1.4258 .1381 1.2936 14685 1.1495 13195 1.5126 1.1610 1.34591.5580 1.1726 1.3728 1.6047 1.1843 1.4002 1.6528 1.1961 1.4282 1.7024 1.2081 1.4568 1.7535 1.2202 14859 1.8061 1.282416406 2.0938 1.3478 18114 2.4273 1.4166 1.999928139 1.488922080 3.2620 1.0000 1.0000 1.0000 1.0000 10000 1.0000 1.0400 1.0500 1.0600 1,0700 1.0800 1.0900 1.0816 1.1025 1.1236 1.1449 1.1664 1.1881 1.1249 1.1576 1.1910 1 2250 1.2597 1.2950 1.1699 1.2155 1.2625 1.3108 1.3605 1.4116 1.2167 1.2763 1.3382 1.4025 1.4693 1.5386 1.2653 1.3401 1.4185 1.5007 1.5859 1.6771 1.3159 1.4071 1.5036 1.6058 1.7138 1.8280 1.3686 1.4775 1.5938 1.7182 1.8509 1.9926 1.4233 1.5513 1.6895 1.8385 1.9990 2.1719 1.4802 1.6289 1.7908 1.9672 2.1589 2.3674 1.5395 1.7103 1.8983 2.1049 2.3316 2.5804 1.6010 1.7959 20122 2252225182 2.8127 1.6651 1.8856 2.1329 24098 2.7196 3.0658 1.7317 1.9799 2.2609 25785 29372 3.3417 1.8009 2.0789 23966 2.7590 3.1722 3.6425 1.87302 1829 25404 2.9522 3.4259 3.9703 1.9479 2.2920 26928 3.1588 3.7000 4.3276 2.0258 2.4066 28543 3.3799 3.9960 4.7171 2.1068 2.5270 3.0256 3.6165 43157 5.1417 2.1911 2.6533 3.2071 3.8697 4.6610 5.6044 26658 3.3864 4.2919 5 .4274 6.8485 8.6231 3.2434 4.32195.74357.6123 10.0627 13.2677 3.9461 5.5160 7 6861 10.6766 14.7853 20.4140 4.801070400 10.2857 14.9745 21.724531.4094 1.0000 1.0000 1.1000 1.1200 12100 1.2544 1.3310 1.4049 1.4641 15735 16105 1.7623 1.7716 1.9738 19487 22107 2.1436 2.4760 2.35792.7731 2.5937 3.1058 28531 3.4785 3.1384 3.8960 3.45234.3635 3.7975 4.8871 4.1772 5.4736 4.5950 6.1304 5.0545 6.8660 5.5599 7.6900 6.1159 8.6128 6.7275 9.6463 10.8347 17.000 17.4494 29.9599 28.1024 52.7996 45.2593 93.0510 1.0000 1.1500 1.3225 1.5209 1.7490 20114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 70757 8.1371 9.3576 10.7613 12.3755 14.2318 16.3665 32.9190 66.2118 133. 1755 267.8635 13 1 15 Used to compute the future of a knows present monte mple: What is the accumulated value of 1.600 invested today at compounded quarry for 5 yearsting the factors of 30 and 25 30 quarterly periods and a quarterly interest rate of 25).the factor is 1439. The accumulated value is 4.457.70 (53,000 X 1.4859). -=[-atie) TABLE B.3: Present Value of an Annuity of 1 Rate . . Periods 1% 2% 3% 10% 12% 15% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 2.9410 28839 2.8286 2.7751 2.7232 2.6730 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 4.8534 471354.5797 4.4518 43295 4.2124 5.7955 5.6014 5.41725.2421 5.0757 4.9173 6.7282 6.4720 6.23036.0021 5.7864 5.5824 7.6517 7.3255 7,0197 6.7327 6.4632 6.2098 8.5660 8.1622 7.7861 7.4353 7.1078 6.8017 9.47138.9826 8.5302 8.11097.7217 7.3601 10.3676 9.7868 9.2526 8.7605 8.3064 7.8869 11.2551 10.5753 9.9540 9.3851 8.8633 8.3838 12.1337 11.3484 10.63509.9856 9.3936 8.8527 13.0037 12.1062 11.2961 10.5631 9.8986 9.2950 13.8651 12.8493 11.9379 11.1184 10.3797 9.7122 14.7179 13.5777 12.5611 11.6523 10.8378 10.1059 15.5623 14.291913.1661 12.1657 11.2741 10.4773 16.3983 14.9920 13.7535126593 11689610.8276 17 2260 15.6785 14.3238 13.1339120853 11.1581 18.0456 16.3514 14.8775 13.5903124622 11.4699 22.0232 19.5235 17.4131 15.6221 14.0939 12.7834 25.8077 22.3965 19.6004 17.2920 15.3725 13.7648 29.4086 24.9986 21.4872 18.6646 16.3742 14.4982 328347 27.3555 23.1148 19.7928 17.1591 15.0463 0.9346 0.9259 0.9174 0.9091 0.8929 1.8080 1.7833 1.7591 1.7355 1.6901 26243 25771 2.5313 2.4869 2.4018 3.3872 3.3121 3.2397 3.16993.0373 4.1002 3.9927 3.8897 3.7908 3.6048 4.7665 4.62294.48594.3553 4.1114 5.3893 5.2064 5.0330 4.8684 4.5638 5.9713 5.7466 5.5348 5.33494.9676 6 .5152 6.2469 5.9952 5.7590 5.3282 7.0236 6.7101 6.4177 6.1446 5 6502 7.4987 7.1390 6.80526.4951 5.9377 7.9427 7.5361 7.1607 6.8137 6.1944 8.3577 7.90387.48697.1034 6.4235 8.74558.2442 7.78627.3667 6.6282 9. 1079 8.5595 8.0607 7.6061 6.8109 9.4466 8.8514 8.3126 78237 6.9740 9.7632 9.12168 .5436 8.0216 7.1196 10.05919.3719 8.7556 8.2014 7.2497 10.3356 9.6036 89501 8.36497.3658 10.5940 9.8181 9.1285 8.5136 7.4694 11.6536 10.6748 9.8226 9.0770 78431 12.4090 11.2578 10.27379.42698.0552 12.9477 11.6546 10.5668 9.6442 8.1755 13.3317 11.9246 10.7574 9.7791 8.2438 0.8696 1.6257 2.2832 2.8550 3.3522 3.7845 4.1604 4.4873 4.7716 501 5.2337 5.4206 5.5831 5.7245 5.8474 5.9542 6.0472 6.1280 6.1982 6.2593 6.4641 6,5660 6.6166 6.6418 35 40 Used to calculate the present value of a series of equal payments made at the end of each period. For example: What is the present value of $2.000 per year for 10 years asuming an annual interest rate of 9. For = 10.1= 9), the PV factor is 6,4177 52.000 per year for 10 years is the equivalent of $12.35 today (52.000 x 64177). TABLE = [(1 + i)* - Iyi Future Value of an Annuity of 1 rods 1% 2% 3% 4% 5% 10% 12% 15% 12054 45061 12 10000 10000 10000 10000 10000 10000 10000 10000 10000 1,0000 1.0000 20100 2.0200 2.0300 2.0400 2.0500 2.0600 2.0700 20800 2.0900 2.1000 2.1200 20201 30604 30909 3.1216 3.15253.1836 32149 32781 3.3100 31744 40604 4.1216 4.1836 4.2465 4.3101 4.3746 44399 4.5731 4.6410 4.7792 5 1010 5.20405 3091 5.4163 5.5256 5.6371 5.7507 5.8666 5.9847 6.1051 6.3528 6.1520 63081 6.4584 66330 68019 69753 7.1533 73359 7.5233 7.7156 1152 7.21357434375625 789838.1420 8.39388.6540 89228 9.2004 9.4872 10.0890 8.2857 8.5830 8.8923 9 .2142 9.5491 9.8975 10.2598 10.6366 11.028511.4359 12 2997 9.3685 9.7546 10.1591 10.5828 11.0266 11.4913 11.9780 12.4876 130210 13.5795 147757 10.4622 10.9497 11.4639 12.0061 12.5779 13.1808 13.8164 14.4866 15.1929 15.9374 17.5487 11.5668 12.1687 12.8078 13.4864 14.2068 14.9716 15.7836 16.6455 17.5603 18.5312 20.6546 126825 13.4121 14.1920 15.025 15.9171 16,8699 17.8885 18.9771 20.1407 21.3843 24.1331 13 8093 14.6803 15.6178 16.6268 17.7130183821 20 1406 21.0953 22 9534 245227 28 0291 149474 15.9739 17 0853 18 2919 19.598621 0151 22.5505242149 26.0192 27 9750 32 3926 16.0969 17.2934 18.5989 20.0236 21.5786 23.2760 25.1290 27.1521 29.360931.7725 37.2797 17.2579.18.6393 20.1569 21.8245 23.6575 25.6725 27.8881 30.3243 33.0034 35.9497 42.7533 18.4304 20.0121 21.7616 23.6975 25.8404 28.2129 30.8402 33.7502 36.9737 40.5447 48.8837 19.6147 21.4123 23 4144 25 545428.1324 30.9057 33 9990 37.450241.3013 45.5992 55.7497 20.8109 22.8406 25.1169 27.6712 30.5390 33.7600 37.3790 41.4463 46.0185 51.1591 63.4397 22.0190 24.2974 26.870429.7781 33,0660 36.7856 40.9955 45.7620 51.1601 57.2750 72.0524 28.243232.0303 36.45934 1.6459 47.7271 54.8545 63.2490 73.1059 84.700998.3471 133.3339 34.7849 40.5681 47 5754 56.084966.4388 79.0582944608 113.2832 135.3075 164.49402413327 41.6603 49.9945 60.4621 73.6522 90.3203 111.4348 138.2369 172.3168 215.7108 271.0244 431.6635 48.8864 60.4020 75.401395.0255 120.7998 154.7620 199.6351 259.0565337.8824 442.5926 767,0914 10000 2.1500 3.4725 4.9934 6.7424 8.7537 11.0668 13.7258 16.7858 20.3037 24.3493 29.0017 343519 40 5047 47.5804 55.7175 65.0751 75.8364 88.2118 102.4436 212.7930 434.7451 8 81.1702 1.779.0903 15 17 25 40 ings sed to calculate the future altres me of of a series of equal ts made at the end of each period. For example: What is the one of 4.000 per year for 6 years s the factor is 7.3359 4.000 per year for years to 29.343.00 54.000 x 73359 MacBook Pro

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