Lippman Company is evaluating a proposal to purchase a new piece of equipment. The cost of the equipment would be $65,325 and the company expects the investment would generate annual cash flows of $15,000 for the next 6 years. Using the appropriate present value table below, compute the internal rate of return (IRR) on this investment.

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Present Value of $1 at Compound Interest Year 6% 8% 10% 12% 15% 20% 1 0.943 0.926 0.909 0.893 0.870 0.833 2 0.890 0.857 0.826 0.797 0.756 0.694 3 0.840 0.794 0.751 0.712 0.658 0.579 4 0.792 0.735 0.683 0.636 0.572 0.482 5 0.747 0.681 0.621 0.567 0.497 0.402 6 0.705 0.630 0.564 0.507 0.432 0.335 7 0.665 0.583 0.513 0.452 0.376 0.279 8 0.627 0.540 0.467 0.404 0.327 0.233 9 0.592 0.500 0.424 0.361 0.284 0.194 10 0.558 0.463 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 8% 10% 12% 15% 20% 1 0.943 0.926 0.909 0.893 0.870 0.833 2 1.833 1.783 1.736 1.690 1.626 1.528 3 2.673 2.577 2.487 2.402 2.283 2.106 4 3.465 3.312 3.170 3.037 2.855 2.589 5 4.212 3.993 3.791 3.605 3.352 2.991 6 4.917 4.623 4.355 4.111 3.784 3.326 7 5.582 5.206 4.868 4.564 4.160 3.605 8 6.210 5.747 5.335 4.968 4.487 3.837 9 6.802 6.247 5.759 5.328 4.772 4.031 10 7.360 6.710 6.145 5.650 5.019 4.192 Present Value of $1 at Compound Interest Year 6% 8% 10% 12% 15% 20% 1 0.943 0.926 0.909 0.893 0.870 0.833 2 0.890 0.857 0.826 0.797 0.756 0.694 3 0.840 0.794 0.751 0.712 0.658 0.579 4 0.792 0.735 0.683 0.636 0.572 0.482 5 0.747 0.681 0.621 0.567 0.497 0.402 6 0.705 0.630 0.564 0.507 0.432 0.335 7 0.665 0.583 0.513 0.452 0.376 0.279 8 0.627 0.540 0.467 0.404 0.327 0.233 9 0.592 0.500 0.424 0.361 0.284 0.194 10 0.558 0.463 0.386 0.322 0.247 0.162 Present Value of an Annuity of $1 at Compound Interest Year 6% 8% 10% 12% 15% 20% 1 0.943 0.926 0.909 0.893 0.870 0.833 2 1.833 1.783 1.736 1.690 1.626 1.528 3 2.673 2.577 2.487 2.402 2.283 2.106 4 3.465 3.312 3.170 3.037 2.855 2.589 5 4.212 3.993 3.791 3.605 3.352 2.991 6 4.917 4.623 4.355 4.111 3.784 3.326 7 5.582 5.206 4.868 4.564 4.160 3.605 8 6.210 5.747 5.335 4.968 4.487 3.837 9 6.802 6.247 5.759 5.328 4.772 4.031 10 7.360 6.710 6.145 5.650 5.019 4.192