Exercise 7 You are considering investing in a project that will require an initial capital outlay of $140000 and generate annual cash flows of $21805 for 10 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 PVA $1 table, where periods = 10 until you find the right factor. Look up at the interest rate and that is the IRR. == Number F 9 AA BIU HA-A- Wrap Text Merge & Center $ - % 68 % Conditional Formatting Alignment Number x o =PV/1$2,$A14,-1,0,0) D E F G H I J K K L M N O P O Present Value of an Ordinary Annuity of $1 3% 4% 6% 9. 10. 11. 12% 13% 14% 15% 16% 17% 18% 19% 20% 0.971 0.362 0.352 0.343 0935 03260917 0309 0301 0 893 0 8850 877 0870 0 862 0855 0 847 0.840 0.833 1913 1686 1859 1833 1802 1783 1759 1736 1713 1690 1668 1647 1625 1605 1585 1566 1547 1528 5 2829 2775 2.723 2673 2624 2.577 2531 2487 2.444 2.402 2361 2322 2283 2246 2210 2174 210 2106 6 3717 3630 3.546 3.465 3387 3312 3240 3.170 302 3037 2974 294 2855 2798 2 743 2630 2639 2 589 7 45804452 4320 4212 4100 3.333 3.830 3791/ 3696 3.605 3517 3433 33523274 3199 327 3058 2991 8 5417 5242 5076 4 917 4.767 4623 4486 4355 4.231 4.111 37338 389 3784 3685 3583 3438 3410 3.328 9 6.230 8.002 575 552 5389 5206 5033 486814 712 4564 4423 4280 430 4033 3922 3812 3 705 3.605 10 7020 6.733 8.463 620 5971 5747 5535 5335 548 4968 4799 4619 4487 4 344 4 207 4.078 3954 3837 11 7.786 7.435 7.100 8.802 6515 6 247 535 5.759 5537 53284 5132 446 4.772 4 807 4451 4303 4.163 4031 12 8530 8.111 7722 0 7024 6710 6.418 6.145 5.889 5.6505428572 5019 420 4659 4494 4339 4.192 13 9253 8.760 83067007 743371396.805 6.435 6.207 5300 5687 5653 524 5029 4805 4.656 4.486 4.327 149.554 9365 8063 8 304 7.943775367151 6.8146.432 614 591 5660 5421 5197 498 4733 4.611 4439 15 10.6359.988 9.39480538350 7304 7.487 7.13 6.250 6.424 625 642 5583 5.342 5 118 4.910 4715 4533 16 11236 10563 989332950745 0.244 7.705 7357 6.982 6 628 6.302 6002 5.724 5.468 5223 5008 4.B02 4611 17 1193811118 10 38097129108 3.559 80617 7.1916 811 6462 612 58475 575 5324 5032 4876 4675 18 2561 11652 0838 0.06 9447 U51 1) 7 7379 674 6604 6265 59545 668 5405 5.162 4.338 4.730 19 13 16 12 166 11 274 10477 9763 902 8.544 802275497120 6.729 6.373 604757435475 5222 4.990 4775 20 13.754 12.653 11690 16280053 9 372 87568.201 7.702 7.250 6.840 6.457 612815 818 554 52735033 4812 21 14 324 13 134 12085 1158 335 95048.350 8.365 7839 7366 6.938 6550 638 5 877 5584 5 316 5.070 4.843 22 14.877 3530 2462114707524 3.0189198514 7983 7.469 70256.630 533 5628 5353 51014870 23 1419 1562 703 1654 1675 9.823 907784227043 733068736464607 786 5467 SS 4348 24 19 600 17292532 3.765 12409 11258 0274 342786948055 7496 7003 65666777 502 5517 5235 4979 25 21487 18.685 3 741 1430 12.343 11655 10.567 9.644 8 855 8.775 7.586 7.0706.617 6215 5858 5539 5251 4.332 1-12 DO O S EX PR BYN in-class PVA Table FVA Table PV Table FV Table ... dy Page 1 of 1 Type here to search
