Annual reduction in existing costs $8,000 86. Refer to Griffith Corporation. What is the internal rate of return on this project (round to the nearest 1/2%)? Present value tables or a financial calculator are required. a. 37.5% b. 25.0% c. 10.5% d. 13.5% ANS: C IRR = $30,000 / $8,000 = 3.75 Using PV of Annuity Table 5 years. The constant of 3.75 corresponds to a rate of 10.5%