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

$$30,516.$

The NPV at $14\%$ is

The NPV at $16\%$ is

The IRR is somewhere between $,$ but closer to $14\%.$

$($Round your answer to two decimal places.$)$

The exact IRR using a business calculator or spreadsheet is $,14\mathrm{.}03\%.$Glamour Accessories is considering an equipment investment that will cost $$925,000.$ Projected net cash inflows over the equipment's three$-$year life are as follows: Year $1$ : $$492,000$; Year $2$:

$$394,000$; and Year $3$: $$300,000.$ Glamour wants to know the equipment's IRR.

$($Click the icon to view the present value annuity table.$)$

$($Click the icon to view the 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

Use trial and error to find the IRR within a $2\%$ range. $($Hint: Use Glamour $\text{'}$s hurdle rate of $12\%$ 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: $12\%,14\%,$ and $16\%.($Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.$)$