Glamour Accessories is considering an equipment investment that will cost $920,000. Projected net cash inflows over...

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Glamour Accessories is considering an equipment investment that will cost $920,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $494,000; Year 2: $388,000; and Year 3: $304.000. Glamour wants to know the equipment's IRR. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) Use trial and error to find the IRR within a 2% range. (Hint: Use Glamour 's hurdle rate of 12% to begin the trial-and-error process.) Use a business calculator spreadsheet to compute the exact IRR Begin by calculating the NPV at three rates: 12%, 14%, and 16 %. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV at 12% is ES: 8 Reference Present Value of Annuity of $1 Periods 1% nd 12 ces.) ator of 2% 3% 4% 5% 6% 8% 10% 12% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 Period 31 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 2.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2914 2.798 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 Period 11 10.368 9.787 9.253 8.760 8.306 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 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 14% 16% 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 3.127 2.991 2.589 3.498 3.812 3.605 4.078 3.837 3.326 7.360 6.710 6.145 5650 5.216 4.833 4.494 4.192 7.887 7 139 6.495 5.938 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 5.342 4.910. 4.533 7.367 6.628 6.002 5.468 5.008) 4.611 8 559 7 606 6.811 6.142 5.575 5.092 4 675 Period 20 18.046 16.351 14.877 13.590 12.462 11 470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22 023 19 523 17 413 15 622 14.094 12 783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Get mo Period 30 25.808 22 396 19 600 17 292 15.372 13.765 11 258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27 355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Print Done - X ent n Reference uit Future Value of Annuity of $1 - X an Periods Period 1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2030 2.040 2.050 2.060 2.080 2.100 2120 2.140 2.160 2.180 2.200 Period 31 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 Period 7 7.214 7.434 7.662 7.898 8.142 7.336 7.716 8.394 8.923 9.487 10.089 10.730 8.115 8.536 8.977 9.442 9.930 11.414 12.142 12 916 Period 8 8.286 8.583 Period 9 Period 10 9.369 9.755 8.892 10.159 10.583 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 11 027 11 491 12 488 13.579 14.776 16.085 17.519 19.086 20.799 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12. 169 12.808 13.486 14 207 14.972 16.645 18.531 20.655 23.045 25 733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30 850 34.931 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18 882 21.495 24 523 28 029 32 089 36.786 42.219 48.497 Period 14 14.947 15.974 17.086 18 292 19.599 21.015 24 215 27.975 32.393) 37.581 43.672 50.818 59.196 Period 15 16.097 17.293 18 599 20.024 21.579 23.276 27.152 31.772 37 280 43.842 51.660 60.965 72.035 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 28.243 32.030 36 459 34.785 40.568 47 575 48 886 60 402 75.401 29.778 33.066 36 786 45.762 57.275 72.052 91.025 115.380 146 628 186.688 98 347 41.646 47.727 54.865 73.106 56.085 66.439 79.058 113 283 164 494 241.333 356.787 790 948 1,181.882 95.026 120 800 154.762 259.057 442.593 767 091 1,342.025 2,360.757 4,163.213 7,343.858 133 334 181.871 249.214 342 603 471.981 530.312 Reference X Present Value of $1 */ 0.951 % %/ Period 10 0.905 0820 0.744 0.888 0.837 0.813 0.789 0.837 0.766 0.703 0.744 0.790 0.746 0.705 0.760 0.711 0.665 0.731 0.677 0.645 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 Period 41 0.961 0.924 0.888 0.855 0.823 0.792 Period 5 0.906 0.863 0.822 0.784 0.747 Period 6 0.942 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 18% 20% 0.847 0.833 0.718 0.694 0.712 0.675 0.641 0.609 0.579 0.627 0.540 0.592 0.500 0.676 0.614 0.558 0.463 0.424 0.386 0.735 0.683 0.681 0.621 0.567 0.519 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.467 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 0.636 0.592 0.552 0.516 0.482 0.476 0.437 0.402 Period 11 0.896 0.804 0.722 0.650 0.585 650 0.585 0.527 0.429 0.350 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.397 0.368 0.442 0.340 0.287 0.237 0.195 0.162 0.135 0.319 0.257 0.208 0.168 0.137 0.112 0.290 0,229 0.182 0.145 0.116 0.093 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0673 0554 0456 0.673 0.554 0.456 Period 25 0.780 0.610 0.478 0.375 0.233 Period 30 0.742 0.552 0.412 0.308 0.231) 0.174 0.099 0.057 0.033 Period 40 0.672 0.453 0.307 0.208 0.142) 0.022 0.011 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.020 0.012 0.007 0.004 0.097 0.046 0.005 0.003 0.001 0.001 26C Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300. 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1,360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.714 1.504 1.949 2.211 2.826 2.502 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 3.278 2.853 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 4.411 3.707 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 2.332 1.898 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 6.261 Period 15 1.161 1.346 1.558 2.079 1.801 2.397 3.172 7.138 4.226 5.117 6.176 7.430 2.853 3.479 4.818 3.896 5.936 7.288 8.916 3.138 5.492 8.599 6.886 10.699 3.452 4.363 3.797 4.887 5.474 4.177 10.147 7.988 12.839 11.974 15.407 Period 20 Period 25 1.282 Period 30 1.348 Period 40 1.489 2.653 1.806 2.191 1.486 1.220 3,386 2.666 1.641 2.094 4.322 1.811 2.427 3.243 4.801 7.040 2.208 3.262 4.661 3.207 4.292 6.848 9.646 13.743 19.461 27.393 6.727 10.835 17.000 26.462 40.874 62.669 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 19 461 27.393 38.338 95.396 Print Done Glamour Accessories is considering an equipment investment that will cost $920,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $494,000; Year 2: $388,000; and Year 3: $304.000. Glamour wants to know the equipment's IRR. (Click the icon to view the present value annuity table.) (Click the icon to view the future value annuity table.) Requirement (Click the icon to view the present value factor table.) (Click the icon to view the future value factor table.) Use trial and error to find the IRR within a 2% range. (Hint: Use Glamour 's hurdle rate of 12% to begin the trial-and-error process.) Use a business calculator spreadsheet to compute the exact IRR Begin by calculating the NPV at three rates: 12%, 14%, and 16 %. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV at 12% is ES: 8 Reference Present Value of Annuity of $1 Periods 1% nd 12 ces.) ator of 2% 3% 4% 5% 6% 8% 10% 12% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 Period 31 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2402 2.322 2.246 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2914 2.798 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 3.274 Period 6 5.795 5.601 5417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 4.039 Period 8 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 Period 9 8.566 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 Period 10 9.471 8.983 8.530 8.111 7.722 Period 11 10.368 9.787 9.253 8.760 8.306 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 5.842 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 14% 16% 18% 20% 0.847 0.833 1.566 1.528 2.174 2.106 2.690 3.127 2.991 2.589 3.498 3.812 3.605 4.078 3.837 3.326 7.360 6.710 6.145 5650 5.216 4.833 4.494 4.192 7.887 7 139 6.495 5.938 5.453 5.029 4.656 4.327 5.660 5.197 4.793 4.439 5.342 4.910. 4.533 7.367 6.628 6.002 5.468 5.008) 4.611 8 559 7 606 6.811 6.142 5.575 5.092 4 675 Period 20 18.046 16.351 14.877 13.590 12.462 11 470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22 023 19 523 17 413 15 622 14.094 12 783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 Get mo Period 30 25.808 22 396 19 600 17 292 15.372 13.765 11 258 9.427 8.055 7.003 6.177 5.517 4.979 Period 40 32.835 27 355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 6.233 5.548 4.997 Print Done - X ent n Reference uit Future Value of Annuity of $1 - X an Periods Period 1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Period 2 2.010 2.020 2030 2.040 2.050 2.060 2.080 2.100 2120 2.140 2.160 2.180 2.200 Period 31 3.030 3.060 3.091 3.122 3.153 3.184 3.246 3.310 3.374 3.440 3.506 3.572 3.640 Period 4 4.060 4.122 4.184 4.246 4.310 4.375 4.506 4.641 4.779 4.921 5.066 5.215 5.368 Period 5 5.101 5.204 5.309 5.416 5.526 5.637 5.867 6.105 6.353 6.610 6.877 7.154 7.442 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 Period 7 7.214 7.434 7.662 7.898 8.142 7.336 7.716 8.394 8.923 9.487 10.089 10.730 8.115 8.536 8.977 9.442 9.930 11.414 12.142 12 916 Period 8 8.286 8.583 Period 9 Period 10 9.369 9.755 8.892 10.159 10.583 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 11 027 11 491 12 488 13.579 14.776 16.085 17.519 19.086 20.799 10.462 10.950 11.464 12.006 12.578 13.181 14.487 15.937 17.549 19.337 21.321 23.521 25.959 Period 11 11.567 12. 169 12.808 13.486 14 207 14.972 16.645 18.531 20.655 23.045 25 733 28.755 32.150 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 27.271 30 850 34.931 39.581 Period 13 13.809 14.680 15.618 16.627 17.713 18 882 21.495 24 523 28 029 32 089 36.786 42.219 48.497 Period 14 14.947 15.974 17.086 18 292 19.599 21.015 24 215 27.975 32.393) 37.581 43.672 50.818 59.196 Period 15 16.097 17.293 18 599 20.024 21.579 23.276 27.152 31.772 37 280 43.842 51.660 60.965 72.035 Period 20 Period 25 Period 30 Period 40 22.019 24.297 26.870 28.243 32.030 36 459 34.785 40.568 47 575 48 886 60 402 75.401 29.778 33.066 36 786 45.762 57.275 72.052 91.025 115.380 146 628 186.688 98 347 41.646 47.727 54.865 73.106 56.085 66.439 79.058 113 283 164 494 241.333 356.787 790 948 1,181.882 95.026 120 800 154.762 259.057 442.593 767 091 1,342.025 2,360.757 4,163.213 7,343.858 133 334 181.871 249.214 342 603 471.981 530.312 Reference X Present Value of $1 */ 0.951 % %/ Period 10 0.905 0820 0.744 0.888 0.837 0.813 0.789 0.837 0.766 0.703 0.744 0.790 0.746 0.705 0.760 0.711 0.665 0.731 0.677 0.645 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 Period 2 0.980 0.961 0.943 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 Period 3 0.971 0.942 0.915 0.889 0.864 0.840 0.794 0.751 Period 41 0.961 0.924 0.888 0.855 0.823 0.792 Period 5 0.906 0.863 0.822 0.784 0.747 Period 6 0.942 Period 7 0.933 0.871 Period 8 0.923 0.853 Period 9 0.914 18% 20% 0.847 0.833 0.718 0.694 0.712 0.675 0.641 0.609 0.579 0.627 0.540 0.592 0.500 0.676 0.614 0.558 0.463 0.424 0.386 0.735 0.683 0.681 0.621 0.567 0.519 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.467 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 0.636 0.592 0.552 0.516 0.482 0.476 0.437 0.402 Period 11 0.896 0.804 0.722 0.650 0.585 650 0.585 0.527 0.429 0.350 Period 12 0.887 0.788 0.701 0.625 0.557 0.497 Period 13 0.879 0.773 0.681 0.601 0.530 0.469 Period 14 0.870 0.758 0.661 0.577 0.505 0.397 0.368 0.442 0.340 0.287 0.237 0.195 0.162 0.135 0.319 0.257 0.208 0.168 0.137 0.112 0.290 0,229 0.182 0.145 0.116 0.093 0.263 0.205 0.160 0.125 0.099 0.078 Period 15 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 Period 20 0.820 0673 0554 0456 0.673 0.554 0.456 Period 25 0.780 0.610 0.478 0.375 0.233 Period 30 0.742 0.552 0.412 0.308 0.231) 0.174 0.099 0.057 0.033 Period 40 0.672 0.453 0.307 0.208 0.142) 0.022 0.011 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.295 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.020 0.012 0.007 0.004 0.097 0.046 0.005 0.003 0.001 0.001 26C Print Done Reference Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 1 1.010 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 Period 2 1.020 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300. 1.346 1.392 1.440 Period 3 1.030 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 Period 4 1.041 1.082 1.126 1.170 1.216 1.262 1,360 1.464 1.574 1.689 1.811 1.939 2.074 Period 5 1.051 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 Period 6 1.062 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 Period 7 1.072 1.149 1.230 1.316 1.407 1.714 1.504 1.949 2.211 2.826 2.502 3.185 3.583 Period 8 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 3.278 2.853 3.759 4.300 Period 9 1.094 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.773 3.252 3.803 4.435 5.160 Period 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 4.411 3.707 5.234 6.192 Period 11 1.116 1.243 1.384 1.539 1.710 2.332 1.898 Period 12 1.127 1.268 1.426 1.601 1.796 2.012 2.518 Period 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 Period 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 6.261 Period 15 1.161 1.346 1.558 2.079 1.801 2.397 3.172 7.138 4.226 5.117 6.176 7.430 2.853 3.479 4.818 3.896 5.936 7.288 8.916 3.138 5.492 8.599 6.886 10.699 3.452 4.363 3.797 4.887 5.474 4.177 10.147 7.988 12.839 11.974 15.407 Period 20 Period 25 1.282 Period 30 1.348 Period 40 1.489 2.653 1.806 2.191 1.486 1.220 3,386 2.666 1.641 2.094 4.322 1.811 2.427 3.243 4.801 7.040 2.208 3.262 4.661 3.207 4.292 6.848 9.646 13.743 19.461 27.393 6.727 10.835 17.000 26.462 40.874 62.669 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772 19 461 27.393 38.338 95.396 Print Done