Autumn Music is considering investing $775,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $105,000 per year for the next ten years. Assume that Autumn Music uses a 10% 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 present value table.) (Click the icon to view the future value of an annuity table) Click the icon to view the future value table.) The intemai rate of return (IRR) is between 8% and 10% 5% and 6% 4% and 5% 6% and 8% i Reference Future Value of $1 10% 12% 149 16% 1010 1060 1.080 1.150 1.020 1.124 1.166 1210 1.300 1.030 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.041 18% 1,180 1.392 1.643 1.920 2288 1.191 1.202 1338 $% 1.040 1050 1.0821.103 1.125 4.158 1.170 1.216 1.276 1.340 1316 1.407 1.369 1477 1.422 1.561 1480 1629 1.260 1.360 1469 1.331 1464 1.611 1051 1062 20% 1 200 1.440 1.728 2.074 2438 2.986 3.583 1 217 1.265 1772 1072 1.254 1.405 1.574 1762 1974 2211 2.476 2773 3.106 3.479 2700 3.135 1.172 2.144 759 1249 3% 1.030 1.061 1.093 1.126 1.159 1.194 1 230 1267 1.305 1344 1.334 1.426 1.469 1.513 1558 1 806 2,094 2.427 3.262 338 1.063 1.094 1.105 1.116 1.127 1.138 1.549 1.161 1.419 1.504 1.594 1689 1.791 1.898 2012 2.133 1 346 1 482 1.561 1 689 1.811 1925 2.100 2.195 2.436 2.502 2.826 2.853 3.278 3.252 3.803 3.707 4.411 5.117 4318 5.936 5.492 6836 6.261 7.988 7.138 9.266 13.743 19.461 26.462 40.874 50.950 85.850 188.884378.721 5.234 6.176 1243 1.710 4 226 1796 1587 1714 1951 1.999 2.159 2332 2518 2720 2937 3.172 4.561 6.848 10.063 21.725 1.268 1294 1.319 3.30 1.539 4501 1.665 1.732 1801 2261 8.599 10 147 11.974 3797 4 177 2.397 5.160 6192 7.430 8.916 10.699 12839 15.407 38.338 25.396 237.376 1,469.772 1885 1.980 2.079 2.653 3.386 4322 7,040 1.486 1.641 1.811 2208 2.191 2.666 3.243 4801 1282 1 348 1489 4.363 4.887 5.474 9646 17.000 29.900 93.051 3.207 4.292 5.743 110 286 6.727 10.835 17.449 45.259 38 27.393 62.669 143.371 750.378 Print Done 0 Reference Periods 2% 0.980 18% 18% 0.862 0.743 0.609 0.516 0.476 0437 20% 0.833 0.694 0.579 0.482 0.042 0.924 0.8880855 OOOOOOOOOOOOOOO 8 8583&SK Present Value of $1 3% 4% 5% 6% 8% 10% 12% 14% 0.971 0.962 0.952 0.943 0.926 0.9090893 0.877 0043 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.915 0.889 0.864 0.840 0.7940.751 0.712 0.675 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.863 0.822 0.784 0.747 0.681 0.790 0.746 0.705 0.630 0.760 0.711 0.665 0.583 0.731 0.677 0.627 0.540 0.703 0.643 0.592 0.500 0.614 0.558 0463 0.527 0.429 0.625 0.557 0.397 0.319 0.601 0.530 0.469 0.368 0.577 0.505 0.442 0.340 0.263 0.642 0.555 0.481 0.4170315 0.239 0.140 0.554 0.456 0.377 0.312 0.215 0.149 0.478 0.375 0.295 0.233 0.146 0.092 0.412 0.308 0.231 0.1740 099 0.057 0.033 0.307 0.208 0.142 0.097 0.046 0.022 0.0110.005 88.98 0.650 0.497 0.743 0.673 0.610 0.552 0.453 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 0.162 0.137 0.112 0.116 0.093 0.099 0.078 0.084 0.065 0.037 0.020 0.0160.010 0.007 0.004 0.001 0.001 0.672 Print Done 0 Reference = X Present Value of Annuity of $1 1 . 17% 0.803 19% 3 119 1430926 0.20 21% 4% 0877 4% 0.862 0 - lo Cr He tes in ' bom v 9 mm 2293 8766 075 9 1348 10 635 19 2. 106 0 53 2.2849 | 1938 | 11.148 7606 | 581 | | 14 877 13.96 12 LF2 8.514 | .459 9 22| 17.41. | 15.622 | 4094 | 12783 | 16 675 | 9.077 | 7.843 | 6.873 | 2396 | 19.600 17.292 | 15272 | 13.765 11.258 9427 | 85 7. 003 28 27 355 | 23.116 19.792 | 17.159 | 15.046 |1.95 9.779 | 8244 17.105 | P" 5 91 6.6.23 2 Print Done Autumn Music is considering investing $775.000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $105,000 per year for the next ten years. Assume that Autumn Music uses a 10% 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 present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) The internal rate of return (IRR) is between i Reference Future Value of Annuity of $1 1.000 6.802 $ 85 AN 1.000 2010 3.030 4.060 5.101 6.152 7214 8.286 9.369 10.462 11.567 12683 13.809 14.947 16.097 22.019 28 243 34.785 49 896 306455% 1.000 1.000 1.000 2020 2030 2040 2.050 3060 3.091 3.122 3.153 4.122 4.184 4.246 4310 5.204 5 309 5.416 5 526 6.308 6.468 6.633 7.434 7.898 8.142 8.583 8.892 9.214 9549 9.755 10.159 10.583 11.027 10.950 11 464 12.005 12.578 12.169 12.808 13.486 14 207 13.412 14.192 15.026 15.917 14 690 15.618 16.627 17.713 15.974 17.086 18.292 19.599 17 293 18.599 20.024 21.579 24 297 26.870 29.778 39.066 32.030 36.459 41.646 47.727 40.568 47.575 56.085 56439 60.40275,401 96.026120.800 0% 18% 10% 1.000 1 000 1000 2060 2.080 2.100 3.184 3.246 3.310 4 375 4 506 4.641 5637 5.867 6.105 6.975 7.336 7.716 8.394 8 923 9487 9.897 10.637 11.436 11.491 12. 488 13.579 13 181 14 487 15 937 14.972 16 645 18531 16.870 18 977 21.384 18 882 21.495 24 523 21.015 24 215 27.975 23 276 27 152 31 772 26 786 45.762 57 275 54.865 73.106 98.347 79 058 113 283 164.44 154.762259.057442 593 12% 14% 18% 18% 20% 1.000 1.000 1.000 1.000 1.000 2.120 2.140 2.160 2.180 2.200 3.374 3.440 3.572 3.640 4 779 4921 5.066 5.215 5368 6.363 6.610 74154 7642 8.115 8.536 8.977 9.442 9.930 10.089 10.730 11.414 12.142 12916 12 300 13.233 14.240 15.327 18.499 14.776 16.085 17519 19.085 20.799 17.549 19.337 21.321 23.521 25 989 20.655 23.045 25.733 28.758 32.150 24.133 27271 30.850 34.931 39.581 28.029 32.089 35.786 42.219 48.497 32.393 37581 43 672 50 818 59 196 37.280 43.842 51.660 60.965 22035 72.052 91025 115 380 146.628 186688 133.334 181.871 249.214 342.603 471.98 241.333 356.787 530.312 790.943 1,181.882 767.0911342.0252,360.7574163.2137.343.858 Print Done