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x E12-32A (similar to) Question Help Ritter Razors is considering an equipment investment that will cost $950,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $486,000; Year 2: $382,000, and Year 3: $292,000. Ritter wants to know the equipment's IRR. (Click the icon to view the present value annuity table.) (Click the icon to view the present value factor table.) (Click the icon to view the future value annuity table.) (Click the icon to view the future value factor table.) Requirement Jse trial and error to find the IRR within a 2% range. (Hint: Use Ritter's hurdle rate of 8% to begin the trial-and-error process.) Use a business calculator or spreadsheet to compute the exact IRR. Begin by calculating the NPV at three rates: 8%, 10%, and 12%. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV at 8% is $ 59,258 The NPV at 10% is $ 26,598 The NPV at 12% is $ (3,644) The IRR is somewhere between 10% and 12% , but closer to 12% Round your answer to two decimal places.) The exact IRR using a business calculator or spreadsheet is %. nter any number in the edit fields and then click Check Answer Present Value of Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 1.970 2.941 3.902 4.853 2% 3% 4% 5% 6% 8% 10% 12% 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 1.942 | 1.913 1.886 1.859 1.833 1.783 1.736 1.690 2.884 2.8292.775 2.723 2.673 2.577 2.487 2.402 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 14% 0.877 1.647 2.322 2.914 3.433 16% 0.862 1.605 2.246 2.798 3.274 18% 0.847 1.566 2.174 2.690 3.127 20% 0.833 1.528 2.106 2.589 2.991 Period 6 5.795 Period 7 6.728 Period 8 7.652 Period 9 8.566 Period 10 9.471 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 6.472 6.230 6.002 5.7865.5825.206 4.868 4.564 4.288 7.325 7020 | 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.162 7.786 7.435 7.108 6.802 6.247 | 5.759 | 5.328 4.946 8.983 | 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 3.685 4.039 4.344 4.607 4.833 3.498 3.812 4.078 4.303 4.494 3.326 3.605 3.837 4.031 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 | 5.938 Period 12 11.255 10.575 | 9.954 9.385 8.863 8.384 7.536 6.814 6.194 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 Period 15 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.6066.811 5.453 5.660 5.842 6.002 6.142 5.029 5.197 5.342 5.468 5.575 4.656 4.793 4.910 5.008 5.092 4.327 4.439 4,533 4.611 4.675 ann Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 0.990 0.980 0.971 0.961 0.951 2% 0.980 0.961 0.942 0.924 0.906 3% 0.971 0.943 0.915 0.888 0.863 4% 5% 6% 8% 0.962 0.952 0.943 0.926 0.925 0.907 0.890 0.857 0.889 0.864 0.840 0.794 0.855 0.823 0.792 0.735 0.822 0.784 0.747 0.681 10% 12% 14% 16% 18% 20% 0.909 0.893 0.877 0.862 0.847 0.833 0.826 0.797 0.769 0.743 0.7180.694 0.751 0.712 0.675 0.641 0.609 0.579 0.683 0.636 0.592 0.552 0.516 0.482 0.621 0.567 0.519 | 0.476 0.437 0.402 Period 6 0.942 Period 7 0.933 Period 8 0.923 Period 9 0.914 Period 10 0.905 0.888 0.871 0.853 0.837 0.820 0.837 0.813 0.789 0.766 0.744 0.790 0.760 0.731 0.703 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.630 0.564 0.665 0.583 0.513 0.627 0.540 0.467 0.592 | 0.500 0.424 0.558 | 0.463 0.386 0.507 0456 0.410 0.370 0.335 0.452 0.400 0.354 0.314 0.279 0.404 0.351 0.305 0.266 0.233 0.361 0.308 0.263 0.225 0.194 0.322 0.270 0.227 0.191 0.162 Period 11 0.896 Period 12 0.887 Period 13 0.879 Period 14 0.870 Period 15 0.861 0.804 0.788 0.773 0.758 0.743 0.722 0.701 0.681 0.661 0.642 0.650 0.625 0.601 0.577 0.555 0.585 0.527 0.429 0.350 0.287 0.2370.195 0.162 0.135 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.530 0.469 0.368 0.290 | 0.229 0.182 0.145 | 0.116 0.093 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.481 0.417 0.315 0.2390.183 0.140 0.108 0.084 0.065 on 873 551 0.312 0.037 0.026 0 456 0377 0.215 0.149 0.104 | 0.073 | 0.051 Future Value of Annuity of $1 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.000 2010 3.030 4.060 5.101 2% 1.000 2020 3.060 4.122 5.204 3% 1.000 2030 3.091 4.184 5.309 4% 1.000 2.040 3.122 4.246 5.416 5% 1.000 2.050 3.153 4.310 5.526 6% 1.000 2.060 3.184 4.375 5.637 8% 1.000 2.080 3.246 4.506 5.867 10% 1.000 2.100 3.310 4.641 6.105 12% 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 16% 1.000 2.160 3.506 5.066 6.877 18% 1.000 2.180 3.572 5215 7.154 20% 1.000 2200 3.640 5.368 7.442 802 Period 6 Period 7 Period 8 Period 9 Period 10 6.152 6.308 6.468 6.633 6.975 7.336 7.716 8.115 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 8.536 10.730 13.233 16.085 19.337 8.977 11.414 14240 17 519 21.321 9.442 12.142 15.327 19 086 23.521 9.930 12.916 16.499 20.799 25.959 Period 11 Period 12 Period 13 Period 14 Period 15 11.567 12.169 | 12.808 13.486 14.207 14.972 16.645 18.531 20.655 12.683 13.412 14.192 15.026 15.917 | 16.870 18.977 21.384 24.133 13.809 14.680 15.618 16.627 | 17.713 18.882 21.495 24.523 28.029 14.947 15.974 17.086 18.292 | 19.599 | 21.015 24.215 | 27.975 32.393 16.09717.29318.599 20.024 21.579 23.276 27.15231.772 37.280 23.045 27 271 32.089 37 581 43.842 25.733 30.850 36.786 43.672 51.660 28.755 34 931 42.219 50.818 60.965 32.150 39.581 48.497 59.196 72.035 91.025 115.380 146.628 186.688 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 Future Value of $1 3% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 1.010 1.020 1.030 1.041 1.051 2% 1.020 1.040 1.061 1.082 1.104 1.030 1.061 1093 1.126 1.159 4% 1.040 1.082 1.125 1.170 1.217 5% 1.050 1.103 1.158 1.216 1.276 6% 1.060 1.124 1.191 1.262 1.338 8% 1.080 1.166 1.260 1.360 1.469 10% 1.100 1.210 1.331 1.464 1.611 12% 1.120 1.254 1.405 1.574 1.762 14% 1.140 1.300 1.482 1.689 1.925 16% 1.160 1.346 1.561 1.811 2.100 18% 1.180 1 392 1.643 1.939 2.288 20% 1.200 1.440 1.728 2.074 2.488 Period 6 Period 7 Period 8 Period 9 Period 10 1062 1072 1.083 1,094 1.105 1.126 1.149 1.172 1.195 1.219 1.194 1.230 1.267 1.305 1.344 1.265 1.316 1.369 1.423 1.480 1.340 1.407 1.477 1.551 1.629 1.419 1.504 1.594 1.689 1.791 1.587 1.714 1.851 1.999 2.159 1.772 1.949 2.144 2.358 2.594 1.974 2.211 2.476 2.773 3.106 2.195 2.502 2.853 3.252 3.707 2.436 2.826 3.278 3.803 4.411 2.700 3.185 3.759 4.435 5.234 2.986 3.583 4.300 5.160 6.192 Period 11 Period 12 Period 13 Period 14 Period 15 1.116 1.127 1.138 1.149 1.161 1.243 1.268 1.294 1319 1.346 1.384 1.426 1.469 1.513 1.558 1.539 1.601 1.665 1.732 1.801 1.710 1.796 1.886 1.980 2.079 1.898 2012 2.133 2.261 2.397 2.332 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 3.479 3.896 4.363 4.887 5.474 4.226 4.818 5.492 6.261 7.138 5.117 5.936 6.886 7.988 9.266 6.176 7.288 8.599 10.147 11.974 7.430 8.916 10.699 12.839 15.407 Period 20 1.220 1.486 1.806 2.191 2.653 3.207 4.661 6.727 9.646 13.743 19.461 27.393 38.338 Ale al

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