Loud Music is considering investing $750,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $100,000 per year for the next ten years. Assume that Loud Music uses an 8% hurdle rate. What is the approximate internal rate of return (IRR) of the studio investment? (Click the icon to view the present value of an annuity table.)(Click the i (Click the icon to view the future value of an annuity table.) Click the cdi Reference The internal rate of return (IRR) is between Present Value of Annuity of $1 Periods | 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 | 0.990 | .980 | 0.971 | D.962 | 0.952 0.943 | 0.928 | D.909 | 0.893 | 0.377 | 0.B62 | 0.847 | 0.833 2 1.970 1.942 1.913 1.88659 1833 1.783 1.738 1.6901.647 1.605 1.568 1.52B 3 2.941 2.884 2.B292.7752.723 26732.577 2.487 2.402 2.3222.2462.174 2.106 4 3.902 3.808 3.7173.6303.546 3.465 3.312 3.170 3.037 29142.7982.6902.589 54.853 47134.5804.452 4.329 4212 3.993 3.7913.605 3.433 3.274 3.127 2.991 6 5.795 5.6015417 5.2425.07 49174.6234.3554.1113.8893.6853.49B 3.326 76.72B 6.472 6.2306.0025.7865.582 5.2064.868 4.56442884.039 3.812 3.605 8 7.652 7.325 7.0206.7336.463 62105.747 5.335 4.968 4.639 4.3444.0783.837 9 8.566 8.162 7.786 7.4357.1086.802 6.247 5.759 5.328 4.9464.6074.3034.031 10 9.471 8.983 8.5308.1117.7227360 6.710 6.1455.650 52164.8334.4944.192 11 10.3689.7879.253B.76D 8.306 7.887 7.1396.4955.93854535.0294.6554.327 12 11.255 1D.5759.9549.3B5 8.863 8.384 7.536B.8146.1945.6605.1974.7934.439 13 | 12.134 | 11.348| 10.635| 9.986 | 9.394 8.853 | 7.904 | 7.103 | 6.424 | 5.842 | 5.342 | 4.910 | 4.533 14 13.004 12.106 11.296 10.563 9.899 9295 8.2447.367 6.628 6.002 54685.008 4.611 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.1425.575 5.092 4.675 20 18.046 16.351 14.877 13.590 12.462 114709.8188.514 7.4696.6235.9295.353 4.870 25 22.023 19.523 17.413 15.62214.0412.7B3 10.675 9.0777.84368736.075.467 4.94B 30 25.808 22.39 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7003 6.177 5.517 4.978 Click to select your answerfs) and then click Check Answer. All parts showing Reference Future Value of Annuity of $1 20% Periods 10% 1.000 12% 14% 1.000 2.140 16% 18% 1.000 2.010 3.030 4.060 5.101 6.152 7.214 8.286 9.369 1.000 2.020 3.060 1.000 2.030 3.091 1.000 2.040 3.122 4.246 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 1.000 2.060 3.184 4.375 5.637 6.975 8.394 9.897 1.000 2.080 3.246 4.506 5.867 7.336 8.923 2.180 3.572 5.215 2.200 3.640 5.368 7.442 3.310 4.641 3.374 4.779 6.353 3.506 5.066 6.877 8.977 4 4.921 6.610 8.536 5.204 6.308 7.434 8.583 5.309 6.468 7.662 8.892 6.633 7.898 9.214 9.930 9.48710.08910.730 11.414 12.14212.916 7.716 9.442 10.637 11.436 2.300 13.23314.24015.327 16.499 9.7550.15910.583 1.027 11.491 12.48813.57914.776 16.085 17.51919.086 20.799 10 10.46210.950 11.464 12.006 12.57813.181 14.487 15.93717.549 19.337 21.3223.52125.959 11.56712.169.808 13.486 14.207 14.972 16.645 18.53120.65523.045 25.73328.755 32.150 12.68313.412 14.192 15.02615.917 16.870 18.97721.384 24.133 27.271 30.85034.93139.581 13.80914.680 15.618 16.62717.713 18.882 21.495 24.523 28.029 32.089 36.786 42.219 48.497 14.9475.9747.086 18.29219.599 21.015 24.21527.97532.393 37.581 43.67250.818 59.196 16.09717.293 18.59920.02421.579 23.276 27.152 31.77237.280 43.842 51.66060.965 72.035 13 15 20 25 30 22.01924.29726.870 29.77833.066 36.786 45.762 57.275 72.052 91.025 15.380146.628 186.688 28.243 32.030 36.459 41.646 47.72754.865 73.106 98.347 133.334 181.871 249.214342.603 471.981 34.785 40.568 47.57556.085 66.43979.058113.283 164.494 241.333356.787530.312790.948 1,181.882 PrintDone S12-11 (similar to) Loud Music is considering investing $750,000 in private lesson studios that will have Reference that Loud Music uses an 8% hurdle rate. What is the approximate intemal rate of r (Click the icon to view the present value of an annuity table.)(Click the i (Click the icon to view the future value of an annuity table.(Click the i Present Value of $1 Periods 1% | 2% | 3% | 4% | 5% | 6% | 8% | 10% | 12% | 14% | 16% | 18% | 20% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 2 0.80 0.961 0.9430.9250.907 0.890 0.857 0.826 0.797 0.79 0.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 40.961 0.924 0.8880.8550.8230.792 0.735 0.683 0.6360.592 0.552 0.516 0.482 5 0.951 0.906 0.8630.8220.784 0.747 0.681 0.621 0.5570.519 0.476 0.437 0.402 6 0.942 0.888 0.8370.7900.746 0.705 0.630 0.5640.507 0.456 0.410 0.370 0.335 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0400 0.354 0.314 0.279 B 0.923 0.853 0.7890.7310.6770.627 0.540 0467 0.404 0.351 0.305 0.266 0.233 90.914 0.837 0.766 0.703 0.645 0.592 0.500 0.4240.350.30 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.6140.5580463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.5270.4290.350 0.287 0.2370.195 0.162 0.135 12 0.887 0.788 0.701 0.6250.5570.497 0.3970.319 0.257 0.2080.168 0.1370.112 13 0.879 0.773 0.681 0.601 0.5300.4690.368 0.290 0.229 0.182 0.145 0.116 0.093 14 0.870 0.758 0.661 0.577 0.505 0442 0.340 0263 0.205 0.160 0.125 0.099 0.078 15 0.8610.743 0.6420.555 04810.4170.315 0239 0.183 0.140 0.108 0.084 0.065 The intemal rate of return (IRR) is between 4% and 5% 6% and 8% 8% and 10% 5% and 6% 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 25 0.780 0.610 0.4780.3750.2950.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 30 0.742 0.552 0.412 0.308 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 Click to select your answerfs) and then click Check Answer PrintDone Loud Music is considering investing S750,000 in private lesson studios that will have no residual value. The studios are expected to result in annual net cash inflows of $100,000 per year for the next ten years. Assume that Loud Music uses an 8% hurdle rate. What is the approximate internal rate of return (IRR) of the studio investment? (Click the icon to view the present value of an annuity table.) Reference (Click the icon to view the future value of an annuity table.) The internal rate of return (IRR) is between Future Value of $1 Periods 6% 1.060 8% 1.080 1.020 1.040 1.061 1.082 1.030 1.040 1.200 4% and 5% 6% and 8% 8% and 10% 5% and 6% 1.020 1.030 1.041 1.051 1.210 1.254 1.405 1.346 1.561 1.811 1.762 1925 2.100 1.300 1482 1.689 1.392 1.643 1.939 2.288 2.488 1.260 1360 1.469 1.728 1.216 1.217 76 1338 1.262 1062 .1261.19412651340 1419 1.587 17721.9742.1952436 2.700 2.986 1.072 1.083 1.094 1.230 1.267 1316 1.407 1.36314771.594 1.551 1.629 1.504 2826 2.144 .47 2.8533.278 2.3582.7733.252 3.803 2.1592.5943.106 3.7074.411 2.502 3.583 1.851 1.999 3.759 4.435 5.234 1.689 10 1.219 1.243 1.268 1.294 1539 1.10 1.898 1.384 1.469 1.558 2.332 2.853 3.479 4.2285.117 6.176 7.288 8.599 3.8964.B185.936 6.886 13 14 10.699 1.149319 1513 1.732 1.980 2.262.937 3.7974.8876.261 7.988 10.147 12.839 3.172 4.177 5.474 7.138 9.26611974 5407 19.461 27.393 38 338 10.83517.000 26.462 40.87462.669 95.396 3.243 4.322 5.743 10.DE31744929.96050.950 85.850 143.371237.376 2.720 4.363 5.492 1.346 1.801 2.079 2397 20 25 30 1.220 1.282 1.348 1.486 2.6533.207 4.661 4.292 6.727 9.646 13.743 Click to select your answerfs) and then click Check Answer. 2.0942.666 3.386 6.848