EX 12
You are considering investing $320000 in a project that will generate annual cash flows of $30828.48 for 15 years. What is the internal rate of return (IRR) for this project?
Take original Cash outlay and divide by annual cash flow to get the factor. Scan the Present value of Annuity, where periods =15 until you find the right factor. Look up at the interest rate and that is the IRR
Provided is the PVA chart needed to complete the problem correctly
Page Layout Formulas Data Review View Help Search Arial - 9 - AA 29 Wrap Text Number aste Merge & Center $ - % 5 08 20 Conditional Form Formatting Tab lipboard Font Alignment Number Style X =PV(1$2,$A14,-1,0,0) 2 D H M NO P R 5 T U UN J O D DO YOU A W N Present Value of an Ordinary Annuity of $1 3% . 4% 5% 6%% 0.971 0.962 8% 0.952 0.943 9% 10% 11%% 12% 13% 14%% 15% 16% 17% 1.913 1.886 1.833 1.808 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 18% 19%% 20% 1.859 3. 717 2.775 1.783 2.829 2.673 3.630 2.723 3.546 3.465 2.624 2.577 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1547 1528 2.531 2.487 2.444 2.402 2.361 2.322 2.283 2.246 2.210 2.174 2.140 2.106 4.580 4.452 4.329 4.212 3.387 4. 100 3.312 3.240 3170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.639 2.589 3.993 5.417 5.242 3.890 3.791 3.696 3.605 3517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 5.076 6.230 6.002 4.917 4.767 4.623 5.786 7.020 5.582 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.498 3.410 3.326 5.389 6.210 5.033 4.868 4.712 4.564 4.423 4.288 4.160 4.039 3.922 3.812 3.706 3.605 6.463 7.786 6.733 7.435 5.971 5.206 5.747 6.515 6.247 5.535 5.335 5.146 4.968 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.837 7.108 6.802 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.451 4.303 4.163 4.031 8.530 8.111 7.722 7.360 7.024 6.710 9.253 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4.833 4.659 4.494 4.339 4.192 8.306 7.887 7.499 14 9.954 8. 760 7.139 6.805 6.495 6.207 5.938 5.687 5.453 5.234 5.029 4.836 4.656 4.486 4.327 9.385 8.863 7.943 9.986 8.384 7.536 7.161 6.814 6.492 6.194 5.918 5.660 5.421 5.197 4.986 4.793 4.611 4.439 15 9.394 8.358 7.904 7.487 7.103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4.910 4.715 4.533 16 10.635 11.296 8.853 10.563 9.893 9.295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5.008 4.802 4.611 17 11.938 11. 118 10.380 9.712 9. 108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 18 12.561 11.652 10.838 10. 106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5 5.405 5.162 4.938 4.730 19 13.166 12. 166 11.274 10.477 9.763 9. 122 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5.475 5.222 4.990 4.775 20 13.754 12.659 11.630 10.828 10.059 9.372 8.756 8.201 7.702 7.250 6.840 6.467 6.128 5.818 5.534 5.273 5.033 4.812 14.324 13.134 12.085 11. 158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5 5.584 5.316 5.070 4.843 14.877 13.590 12.462 11.470 10.594 9.818 9.129 8.514 7.963 7.469 7.025 6.623 6.259 5.9295 5.628 5.353 5.101 4.870 23 17.413 15.622 14.094 12. 783 11.654 10.675 9.823 9.077 8.422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 24 19.600 17.292 15.372 13.765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6.177 5.829 5.517 5.235 4.979 25 21487 18.665 16 374 14.498 12.948 11.655 19.644 8.176 7.586 7070 6.617 6.215 5.858 5.539 5.251 4.992 -.. DQ QS EX PR BYN In-class PVA Table FVA Table PV Table FV Table + Page: 1 of 1 Type here to search O e 15 16 X 19 # % 2 3 5 6 8
