Gardner Denver Company is considering the purchase of a new piece of factory equipment that will come $11,255 and will generate 395,000 per year for 5 years Calculate the IRR for this piece of equipment (Click here to see present value and future value tables) Present Value of 1 N- 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Period (n) 196 0.990 0.980 0.971 0.961 0.952 0.942 0.933 0.924 0.914 0.905 0.896 0.888 0.879 0.861 0.861 0.853 0.844 0.836 0.828 0.820 Present Value of $1 Table 1 Factor (1+1) Rate (1) 396 5% 8% 10% 0.971 0.952 0.926 0.909 0.943 0.907 0.857 0.826 0.915 0.864 0.794 0.751 0.888 0.823 0.735 0.683 0.863 0.784 0.681 0.621 0.837 0.746 0.630 0.564 0.813 0.711 0.583 0.513 0.789 0.677 0.540 0.467 0.766 0.645 0.500 0.424 0.744 0.614 0.463 0.386 0.722 0.585 0.429 0.350 0.701 0.557 0.397 0.319 0.681 0.530 0.368 0.290 0.661 0.505 0.340 0.263 0.642 0.481 0.315 0.239 0.623 0.458 0.292 0.218 0.605 0.436 0.270 0.198 0.587 0.416 0.250 0.180 0.570 0.396 0.232 0.164 0.554 0.377 0.215 0.149 296 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 12% 0.893 0.797 0.712 0.636 0.567 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.163 0.146 0.130 0.116 0.104 15% 0.870 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187 0.163 0.141 0.123 0.107 0.093 0.081 0.070 0.061 20% 0.833 0.694 0.579 0.482 0.402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 0.054 0.045 0.038 0.031 0.026 Figure Bt Present Value of $1 Table Present Value of an Ordinary Annuity Table Present Value of an ordinary Annuity Table [1 - 1/(1 + )" Factor = N Rate (i) 196 2% 3% 5% 8% 1 0.990 0.980 0.971 0.952 0.926 2 1.970 1.942 1.913 1.859 1.783 3 2.941 2.884 2.829 2.723 2.577 4 3.902 3.808 3.717 3.546 3.312 5 4.853 4.713 4.580 4.329 3.993 6 5.795 5.601 5.417 5.076 4.623 7 6.728 6.472 6.230 5.786 5.206 8 7.652 7.325 7.020 6.463 5.747 9 8.566 8.162 7.786 7.108 6.247 10 9.471 8.983 8.530 7.722 6.710 11 10.368 9.787 9.253 8.306 7.139 12 11.255 10.575 9.954 8.863 7.536 13 12.134 11.348 10.635 9.394 7.904 14 13.004 12.106 11.296 9.899 8.244 15 13.865 12.849 11.938 10.380 8.559 16 14.718 13.578 12.561 10.838 8.851 17 15.562 14.292 13.166 11.274 9.122 18 16.398 14.992 13.754 11.690 9.372 19 17.226 15.678 14.324 12.085 9.604 20 18.046 16.351 14.877 12.462 9.818 Figure B2 Present Value of an Ordinary Annuity Table Period (n) 10% 0.909 1.736 2.487 3.170 3.791 4.355 4.868 5.335 5.759 6.145 6.495 6.814 7.103 7.367 7.606 7.824 8.022 8.201 8.365 8.514 12% 0.893 1.690 2.402 3.037 3.605 4.111 4.564 4.968 5.328 5.650 5.938 6.194 6.424 6.628 6.811 6.974 7.120 7.250 7.366 7.469 15% 0.870 1.626 2.283 2.855 3.352 3.785 4.160 4.487 4.772 5.019 5.234 5.421 5.583 5.725 5.847 5.954 6.047 6.128 6.198 6.259 20% 0.833 1.528 2.106 2.589 2.991 3.326 3.605 3.837 4.031 4.192 4.327 4.439 4.533 4.611 4.675 4.730 4.775 4.812 4.844 4.870 Future Value of $1 Table Period (n) 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 196 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.173 1.184 1.196 1.208 1.220 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1.195 1.219 1.243 1.268 1.294 1.319 1.346 1.373 1.400 1.428 1.457 1.486 Future Value of $1 Table Factor = (1+1) Rate() 3% 5% 8% 1096 1.030 1.050 1.080 1.100 1.061 1.103 1.166 1.210 1.093 1.158 1.260 1.331 1.126 1.216 1.360 1.464 1.159 1.276 1.469 1.611 1.194 1.340 1.587 1.772 1.230 1.407 1.714 1.949 1.267 1.477 1.851 2.144 1.305 1.551 1.999 2.358 1.344 1.629 2.159 2.594 1.384 1.710 2.332 2.853 1.426 1.796 2.518 3.138 1.469 1.886 2.720 3.452 1.513 1.980 2.937 3.797 1.558 2.079 3.172 4.177 1.605 2.183 3.426 4.595 1.653 2.292 3.700 5.054 1.702 2.407 3.996 5.560 1.754 2.527 4.316 6.116 1.806 2.653 4.661 6.727 12% 1.120 1.254 1.405 1.574 1.762 1.974 2.211 2.476 2.773 3.106 3.479 3.896 4.363 4.887 5.474 6.130 6.866 7.690 8.613 9.646 15% 20% 1.150 1.200 1.323 1.440 1.521 1.728 1.749 2.074 2.011 2.488 2.313 2.986 2.660 3.583 3.059 4.300 3.518 5.160 4.046 6.192 4.652 7.430 5.350 8.916 6.153 10.699 7.076 12.839 8.137 15.407 9.358 18.488 10.761 22.186 12.375 26.623 14.232 31.948 16.367 38.338 Figure 3 Future Value of St Table Future Value of an Ordinary Annuity Table 12% Future Value of an Ordinary Annuity Table Factor - [(1 + i)-1 Rate (1) 1% 2% 3% 5% 896 1096 159 2096 1 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 2 2.010 2.020 2.030 2.050 2.080 2.100 2.120 2.150 2.200 3 3.030 3.060 3.091 3.153 3.246 3.310 3.374 3.473 3.640 4.060 4.122 4.184 4.310 4.506 4.641 4.779 4.993 5.368 5 5.101 5.204 5.309 5.526 5.867 6.105 6.353 6.742 7.442 6 6.152 6.308 6.468 6.802 7.336 7.716 8.115 8.754 9.930 7 7.214 7.434 7.662 8.142 8.923 9.487 10.089 11.067 12.916 8 8.286 8.583 8.892 9.549 10.637 11.436 121800 13.727 16.499 9.369 9.755 10.159 11.027 12.488 13.579 14.776 16.786 20.799 10 10.462 10.950 11.464 12.578 14,487 15.937 17.549 20.304 25.959 11 11.567 12.169 12.808 14.207 16.645 18.531 20.655 24.349 32.150 12 12.683 13.412 14.192 15.917 18.977 21.384 24.133 29.002 39.581 13 13.809 14.680 15.618 17.713 21.495 24.523 28.029 34.352 48.497 14 14.947 15.974 17.086 19.599 24.215 27.975 32 393 40.505 59.196 15 16.097 17.293 18.599 21.579 27152 31.772 37.280 47.580 72.035 16 17.258 18.639 20.157 23.657 30.324 35.950 42.753 55.717 87.442 17 18.430 20.012 21.762 25.840 33.750 40.545 48.884 65.075 105.930 18 19.615 21.412 23.414 28.132 37.450 45.599 55.750 75.836 128.120 19 20.811 22.841 25.117 30.539 41.446 51.159 63.440 88.212 154.740 20 22.019 24.297 26.870 33.066 45.762 57.275 72.052 102.440 186.690 Period (n)