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Lobel Machines Company is evaluating an investment of $1,300,000 which will yield net cash inflows of $217,719 per year for 88 years with no residual
Lobel Machines Company is evaluating an investment of
$1,300,000
which will yield net cash inflows of
$217,719
per year for
88
years with no residual value. What is the internal rate of return?
Present value of ordinary annuity of $1:
5% | 6% | 7% | 8% | |
1 | 0.952 | 0.943 | 0.935 | 0.926 |
2 | 1.859 | 1.833 | 1.808 | 1.783 |
3 | 2.723 | 2.673 | 2.624 | 2.577 |
4 | 3.546 | 3.465 | 3.387 | 3.312 |
5 | 4.329 | 4.212 | 4.100 | 3.993 |
6 | 5.076 | 4.917 | 4.767 | 4.623 |
7 | 5.786 | 5.582 | 5.389 | 5.206 |
8 | 6.463 | 6.21 | 5.971 | 5.747 |
9 | 7.108 | 6.802 | 6.515 | 6.247 |
10 | 7.722 | 7.36 | 7.024 | 6.71 |
A.
88%
B.
77%
C.
99%
D.
66%
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