PAESENT VALUE OF $1.00 Per. 4% 6% 1 0.9615 0.9434 2 0.9246 0.89 3 0.889 0.8396 4 0.8548 0.7921 5 0.8219 0.7473 8% 9% 10% 11% 0.9259 0.9174 0.9091 0.9009 0.8573 0.8417 0.8264 0.8116 0.7938 0.7722 0.7513 0.7312 0.735 0.7084 0.683 0.6587 0.6806 0.6499 0.6209 0.5935 PRESENT VALUE OF A SERIES OF $1.00 CASH FLOWS 12% 15% Per. 4% 6% 8% 9% 10% 0.8929 0.8696 1 1 0.9615 0.9434 0.9259 0.9174 0.9091 0.7972 0.7561 2 1.8861 1.8334 1.7833 1.7591 1.7355 0.7118 0.6575 3 2.7751 2.673 2.5771 2.5313 2.4869 0.6355 0.5718 4 3.6299 3.4651 3.3121 3.2397 3.1699 0.5674 0.4972 5 4.4518 4.2124 3.9927 3.8897 3.7908 11% 0.9009 1.7125 2.4437 3.1024 3.6959 12% 0.8929 1.6901 2.4018 3.0373 3.6048 15% 0.8696 1.6257 2.2832 2.855 3.3522 INSTRUCTIONS: For each situation, calculate the Internal Rate of Return (IRR). Use the PV table above, and have your calculator nearby. Results 1 Ken pays $4803.60 for a 3-year annuity of $2,000 per year. What is the Internal Rate of Return? % 0 2 Rolf Co. pays $9,947.60 for a three year annuity of $4,000 per year. What is the Internal Rate of Return? %