1. Luong Machines Company is evaluating an investment of $1,100,000 which will yield net cash inflows of $197,062 per year for 7 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

   		6%
   		5%
   		8%
   		7%