Autumn Music is considering investing $675,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $95,000 per year for the next nine years Assume that Autumn Music uses a 12% hurdle rate. What is the approximate internal rate of return (IRR) of the studio investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value table.) The internal rate of retum (IRR) is between Present Value of Annuity of $1 Periods 2% 3% 4% 0.980 0.971 0.962 1.942 1.913 Period 13 12.134 Period 14 13.004 Period 15 13.865 Period 20 18.046 Period 25 22.023 Period 30 25 808 Period 40 32.835 1% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 0.990 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 3.127 2.991 Period 6 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.2881 4.039 3.812 3.605 Period & 7.652 7.325 7.020 6.733 6.463 6.210 5,747 5.335 4.968 4.639 4344 4.078 3.837 Period 9 8 566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7139 6.495 5.938 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6424 12.106 11.296 10,563 9.899 9,295 8.244 7.367 6.628 12.849 11.938 11 118 10.380 9.712 8.559 7.606 6.811 16.351 14 877 13.590 12 462 11 470 9818 8.514 7.469 19 523 17 413 15.622 14.094 12.783 10.675 9.0777843 22,396 19 600 17.292 15.372 13.765 11 258 9.427 8.055 27 355 23 115 19.793 17.159 15.046 11.925 9.779 5.216 4.833 4.494 4.192 6.453 5.029 4.656 4327 5.660 5.197 4 793 4439 5.842 5.342 4.910 4.533 6.002 6.142 5575 5.468 5.008 4.611 5.092 4.675 6,623 6929 5.353 4870 6.873 6.097 5.467 4948 7003 6177 5.517 4.979 8.244 7105 6233 5.548 4.997 Present Value of $1 Periods 1% 2% 3% 4% Period 1 0.990 0.980 0.971 0.962 Period 2 0.980 0.961 0.943 0.925 Period 3 0.971 0.942 0.915 0.889 Period 4 0961 0.924 0.888 0.855 Period 5 0.951 0.906 0.863 0.822 Period 6 0.942 0.888 0.837 0.790 0.746 Period 7 0.933 0871 0.813 0.760 Period 8 Period 9 Period 10 0.905 0.923 0.853 0.789 0.914 0.837 0.766 0820 0.744 0.731 0.703 0.676 Period 11 0.896 0.804 0,722 0.650 0.585 Period 12 0.887 0.788 0.701 0.625 0.557 Period 13 0.879 0.773 0.681 0.601 0.530 Period 14 0870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 0.497 0469 0.505 0.442 0.340 0.263 0.205 0.160 0.481 0.417 0.315 0.239 0.183 0.140 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.527 0.429 0.350 0.287 0.237 0.397 0.319 0.257 0.208 0.368 0.290 0.229 0.182 0.194 0.162 0.195 0.162 0.135 0.168 0.137 0.112 0.145 0.116 0.093 0.125 0.099 0.078 0.108 0.084 0.065 Period 20 0.820 0.673 0,554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.742 0.552 0.412 0.308 0.231 Period 40 0.672 0.453 0,307 0.208 0.142 0.097 0.312 0.215 0.149 0.104 0.073 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.046 0.022 0.011 0.005 0.051 0.037 0.026 0.010 0.003 0.001 0.001 Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.000 1.000 1,000 1.000 1.000 1.000 1.000 1.000 1,000 1.000 000 000 1.000 Period 2 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2120 2.140 2.150 2.180 2.200 Period 3 3.030 3.060 3.153 Period 4 4.060 4.122 Period 5 5,101 5,204 Period 6 6.152 6,308 6.468 Period 7 7.214 7.434 Period 8 Period 9 Period 10 8.286 8.583 12.578 3,091 3.122 4.184 4.246 4.310 4,375 4,506 4.641 4.779 5.309 5.416 5.526 5.637 5.867 6.105 6,353 6.633 6.802 6.975 7.336 7.716 8.115 7.662 7 898 8.142 8.394 8.923 9.487 10.089 8.892 9.214 9.549 9.897 10.637 9.369 9.755 10.159 10.583 11.027 10 462 10.950 11.464 12.006 3.184 3.246 3.310 3.374 3.440 3.606 3.572 3.640 4.921 5066 5.215 6.368 6.610 6.877 7.164 7442 8.536 8977 9.442 9.930 10,730 11 414 12.142 12,916 11 436 12.300 13.233 14.240 15.327 15.499 11 491 12.488 13.579 14.776 16.085 17.619 19.086 20,799 13.181 14.487 15.937 17.549 19.337 21.321 23.621 25 959 Period 11 Period 13 Period 14 Period 15 Period 20 Period 25 Period 30 Period 40 11.567 12.169 12.808 13.486 14.207 14,972 16.645 18,531 20.655 Period 12 12.683 13.412 14,192 15.026 15.917 16.870 18.977 21.384 24 133 13.809 14.680 15.618 16.627 17.713 18.882 21 495 24,523 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 16.097 17 293 18,599 20.024 21.579 23.276 27,152 31,772 22.019 24,297 28 243 32 030 34.785 40.568 48 886 60 402 23,045 26.733 28.766 32 150 27.271 30 850 34.931 39.681 28,029 32.089 36.786 42.219 48.497 32 393 37.681 43 672 50 818 59.196 37 280 43.842 51.660 60.966 72.035 26.870 29.778 33.066 36.786 45.762 67.275 72.052 36.459 41.646 47.727 54.865 73.106 98 347 133 334 47,575 56.085 66.439 79.058 113 283 164 494 241,333 75 401 95 026 120 800 154.762 259.057 442.593 767 091 91.025 115.380 146.628 186 688 181,871 356.787 249 214 342.603 471.981 530312 790 948 1.181882 1.342,025 2.360 757 4,163,213 7.343.858 Future Value of $1 Periods Period 1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.010 1.020 1.030 1.040 1,050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.300 1.254 1.346 1392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1,344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 Period 11 1,116 1.243 1.384 1.539 1.710 1.898 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 Period 13 1,138 1.294 1.469 1.665 Period 14 1,149 1.319 1.513 1.732 Period 15 1.161 1.346 1.558 1.801 1.886. 2.133 1.980 2.261 2.079 2.397 2.332 2.853 2.518 3.138 2.720 3.452 4.363 2.937 3.797 6.261 4.887 3.172 4.177 5.474 3479 4.226 5.117 6.176 7430 3.896 4.818 5.936 7.288 8916 5.492 6.886 8.599 10.699 7.988 10.147 12 839 7.138 9.266 11.974 15.407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19 461 27.393 38.338 Period 251 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40 874 62.669 95.396 Period 30 1.348. 1.811 2.427 3 243 4.3221 10.063 17.449 29.960 50.950 Period 40 1.489 2.2081 3.262 4.801 7.040 5.743 10.286 21.725 45.259 93.051 188.884 378.721 750 378 1,469.772 85.850 143.371 237 376