Jackson Music is considering investing $600,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $90,000 per year for the next nine years Assume that Jackson Music uses a 10% hurdle rate. What is the approximate intemal rate of return (IRR) of the studio investment? (Click the icon to viow the present value of an annuity table.) (Click the icon to viow 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 retum (IRR) is between 4% and 5% 6% and 8% 5% and 6% 8% and 10% Reference Present Value of Annuity of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 0.990 0.980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 1.970 1.942 1.913 1.8861.8591.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 3 2.941 2.884 2.829 2.7752.7232.673 2.577 2487 2.402 2.322 2.246 2.174 2.106 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 54.853 4.713 4.580 4.4524.3294.212 3.9933.791 3.605 | 3.433 3.274 3.127 2.991 6 5.795 5.601 5.417 5.2425.0764.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 7 6.728 6.472 6.230 6.0025.7865.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 8 7.652 7.325 7.020 6.7336.4636.210 5.747 5.335 4.968 4.639 4.344 4.078 3.837 98.566 8.162 7.786 7.4357.1086.802 6.2475.759 5.328 4.946 4.607 4.303 4.031 10 9.4718.983 8.530 8.1117.7227.3606.710 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.3067.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 4.439 13 12.134 11.348 10.635 9.9869.394 8.853 7.9047.103 6.424 5.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.5639.8999.2958.2447.367 6.628 6.002 5.468 5.008 4.611 15 13.865 12.849 11.938 11.118 10.3809.7128.559 7.606 6.811 6.142 5.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7469 6.623 5.929 5.353 4.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11258 9.427 8.055 7.003 6.177 5.517 4.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Reference Future Value of Annuity of $1 Periods 2 3 2 7 10.08910.730 11.414 12.14212.916 0.63711.436 2.30013.23314.240 15.327 16.99 9.75510.15910.583 11.027 11.491 12.48813.57914.776 16.085 17.519 19.086 20.799 10.462 10.95011.464 12.006 12.578 13.1814.487 15.937 17.549 19.337 21.32123.52125.959 11.567 12.16912.808 13.486 14.20714.97216.645 18.531 20.655 23.045 25.73328.755 32.150 12.683 13.41214.192 5.026 15.917 16.8708.977 21.384 24.133 27.271 30.85034.931 39.581 13.80914.68015.618 16.627 17.713 18.88221.495 24.523 28.029 32.089 36.78642.21948.497 14.947 15.97417.086 18.292 19.599 21.01524.215 27.975 32.393 37.581 43.67250.81859.196 16.097 17.29318.599 20.024 21.579 23.27627.152 31.772 37.280 43.842 51.66060.965 72.035 22.019 24.297 26.870 29.778 33.066 36.78645.76257.275 72.052 91.025 115.380146.628 186.688 28.24332.030 36.459 41.646 47.727 54.86573.106 98.347 133.334 181.871 249.214342.603471.981 2 4 8 1 5 7 34.785 40.56847.575 56.085 66.439 79.058 113.283164.494 241.333356.787 530.312 790.948 1,181.882 48.886 60.40275.401 95.026 120.800 154.762 259.057442.593 767.091 1,342.025 2,360.757 4,163.213 7,343.858 1 Reference Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 2 10.990 0.980 0.971 0.9620.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 0.980 0.961 0.943 0.9250.907 0.8900.857 0.826 0.797 0.769 0.743 0.718 0.694 3 0.971 0.942 0.915 0.8890.8640.8400.7940.751 0.712 0.675 0.6410.609 0.579 4 0.9610.924 0.888 0.855 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 5 0.951 0.906 0.863 0.8220.7840.747 0.6810.621 0.567 0.519 0.476 0.437 0.402 6 0.942 0.888 0.837 0.7900.746 0.705 0.6300.564 0.507 0.456 0.410 0.370 0.335 7 0.933 0.871 0.813 0.7600.7110.665 0.583 0.513 0.452 0.400 0.3540.314 0.279 80.923 0.853 0.789 0.7310.6770.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 90.914 0.837 0.766 0.7030.6450.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 10 0.905 0.820 0.7440.676 0.614 0.5580.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 12 0.887 0.788 0.701 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 13 0.879 0.773 0.681 0.6010.530 04690.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.661 0.5770.505 0442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 15 0.861 0.743 0.642 0.555 0.481 0417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.1040.073 0.051 0.037 0.026 25 0.780 0.610 0.478 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.552 0.412 0.308 0.2310.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 40 0.672 0.453 0.307 0.208 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 2 1 3 2-200 40 28 2 2 254 160 102 400 7 4 65 .3 .3 12 519 3 -11-12 23345 678 10 11 7 419 148 4%-300 4 6 9 5 50 5 5 7 284 201 38 re 4 10 48 4 114 360 69 997 4 5 999 59 32 18 20 9 2 66 1112 22223 46 10 21 4 2 801 6 5 1 1 .2 277 666 8 3 5 12345 67890 12345 20 234