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12 Homework Question 6, E12-32A (similar to) Part 1 of 5 HW Score: 61.28%, 3.59 of 7 points O Points: 0 of 1 Save Tovar
12 Homework Question 6, E12-32A (similar to) Part 1 of 5 HW Score: 61.28%, 3.59 of 7 points O Points: 0 of 1 Save Tovar Toasters is considering an equipment investment that will cost $940,000. Projected net cash inflows over the equipments three-year life are as follows: Year 1: $500,000 Year 2: $368,000 Kand Year 3: $298,000. Tovar 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 Tovar's hurdle rate of 10% to begin the trial-and-emor process.) Use a business calculator or spreadsheet to compute the exact RR. Begin by calculating the NPV at three rates: 10%, 12%, and 14%. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) at 10% is The NPV at
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