Omicron Manufacturing. Present Value of $1 Received at the End of
Each Period for n Periods
Years Discount Rate (r)
(n) 1% 2% 4% 6% 8% 10%
1 0.990 0.980 0.962 0.943 0.926 0.909
2 1.970 1.942 1.886 1.833 1.783 1.736
3 2.941 2.884 2.775 2.673 2.577 2.487
4 3.902 3.808 3.630 3.465 3.312 3.170
5 4.853 4.713 4.452 4.212 3.993 3.791
6 5.795 5.601 5.242 4.917 4.623 4.355
7 6.728 6.472 6.002 5.582 5.206 4.888
8 7.652 7.325 6.733 6.210 5.747 5.335
9 8.566 8.162 7.435 6.802 6.247 5.759
10 9.471 8.983 8.111 7.360 6.710 6.145
What is the interpolation of the internal rate of return for proposal A?
What is the interpolation of the internal rate of return for proposal B?