interpolation of the internal rate of return

Dec 2009
9
0
[FONT=&quot]Omicron Manufacturing. [/FONT][FONT=&quot]Present Value of $1 Received at the End of[/FONT]
[FONT=&quot]Each Period for [/FONT][FONT=&quot]n [/FONT][FONT=&quot]Periods[/FONT]
[FONT=&quot]Years Discount Rate ([/FONT][FONT=&quot]r[/FONT][FONT=&quot])[/FONT]
[FONT=&quot]([/FONT][FONT=&quot]n[/FONT][FONT=&quot]) 1% 2% 4% 6% 8% 10%[/FONT]
[FONT=&quot]1 0.990 0.980 0.962 0.943 0.926 0.909[/FONT]
[FONT=&quot]2 1.970 1.942 1.886 1.833 1.783 1.736[/FONT]
[FONT=&quot]3 2.941 2.884 2.775 2.673 2.577 2.487[/FONT]
[FONT=&quot]4 3.902 3.808 3.630 3.465 3.312 3.170[/FONT]
[FONT=&quot]5 4.853 4.713 4.452 4.212 3.993 3.791[/FONT]
[FONT=&quot]6 5.795 5.601 5.242 4.917 4.623 4.355[/FONT]
[FONT=&quot]7 6.728 6.472 6.002 5.582 5.206 4.888[/FONT]
[FONT=&quot]8 7.652 7.325 6.733 6.210 5.747 5.335[/FONT]
[FONT=&quot]9 8.566 8.162 7.435 6.802 6.247 5.759[/FONT]
[FONT=&quot]10 9.471 8.983 8.111 7.360 6.710 6.145[/FONT]
[FONT=&quot]What is the interpolation of the internal rate of return for proposal A?[/FONT]
[FONT=&quot]What is the interpolation of the internal rate of return for proposal B?[/FONT]

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