Question
Internal Rate of Return (IRR) Periods 1 2 3 4 5 Present Value of $1 at Compound Interest 7.0% 4.0% 4.50% 5.0% 5.50% 6.0% 6.50%
Internal Rate of Return (IRR) Periods 1 2 3 4 5 Present Value of $1 at Compound Interest 7.0% 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.50% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 8.0% 0.92456 0.91573 0.90703 0.89845 0.89000 0.88166 0.87344 0.86533 0.85734 0.88900 0.87630 0.86384 0.85161 0.83962 0.82785 0.81630 0.80496 0.79383 0.85480 0.83856 0.82270 0.80722 0.79209 0.77732 0.76290 0.74880 0.73503 0.82193 0.80245 0.78353 0.76513 0.74726 0.72988 0.71299 0.69656 0.68058 6 7 0.79031 0.76790 0.74622 0.72525 0.70496 0.68533 0.66634 0.75992 0.73483 0.71068 0.68744 0.66506 0.64351 0.62275 0.64796 0.63017 8 0.60275 0.58349 0.73069 0.70319 0.67684 0.65160 0.62741 0.60423 0.58201 0.56070 0.54027 9 0.70259 0.67290 0.64461 0.61763 0.59190 0.56735 0.54393 0.52158 0.50025 10 067556 0.64393 061391 0.58543 0.55839 0.53273 0.50835 0.48519 0.46319 Present Value of an Annuity of $1 at Compound Interest Periods 1 2 4.0% 4.50% 5.0% 5.50% 6.0% 6.50% 7.0% 0.96154 0.95694 0.95238 0.94787 0.94340 0.93897 0.93458 0.93023 0.92593 7.50% 8.0% 1.88609 1.87267 1.85941 1.84632 1.83339 1.82063 32.77509 1.80802 1.79557 1.78326 2.74896 2.72325 2.69793 2.67301 2.64848 2.62432 2.60053 2.57710 5 6 7 8 9 4 3.62990 3.58753 3.54595 3 50515 3.46511 3.42580 3.38721 3.34933 3.31213 4.45182 4.38998 4.32948 4.27028 421236 4.15568 4.10020 4.04588 3.99271 5.24214 -5.15787 5.07569 4.99553 491732 4.84101 4.76654 4.69385 4.62288 6.00205 5.89270 5.78637 5.68297 5.58238 548452 5.38929 5.29660 5.20637 6.73274 6.59589 6 46321 6.33457 6 20979 6 08875 5.97130 5.85730 5.74664 7.43533 7.26879 7.10782 6.95220 6.80169 665610 6.51523 6.37889 6.24689 8.11090 7.91272 7.72173 753763 7.36009 7.18883 7.02358 6.86408 6.71008 10 Use the information below and the tables above to determine the Internal Rate of Return (IRR) on the proposed investment. Cost of New Equipment Annual Net Cash Flows Life PV of an Annuity Factor i-IRR; n=5 (round to 5 places past decimal) Internal Rate of Return IRR (show rate to I place past decimal) $30,000.00 $7,414.95 5 years %
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