Chandler Chairs is considering an equipment investment that will cost $940,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $502,000; Year 2: $400,000; and Year 3: $286,000. Chandler 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.) 7(Click the icon to view the future value factor table.) Use trial and error to find the IRR within a 2% range. (Hint: Use Chandler'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.) The NPV at 12% is $ Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 12345 1 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 2.010 2.020 2.030 2.040 2.050 2.060 2.080 2.100 2.120 2.140 2.160 2.180 2.200 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 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 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 GOGO123152223 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 9.930 7 7.214 7.434 7.662 7.898 8.142 8.394 8.923 9.487 10.089 10.730 11.414 12.142 12.916 8 8.286 8.583 8.892 9.214 9.549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 9 9.369 9.755 10.159 10.583 11.027 11.491 12.488 13.579 14.776 16.085 17.519 19.086 20.799 10 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 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 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 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 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 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 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 28.243 32.030 36.459 41.646 47.727 54.865 73.106 98.347 133.334 181.871 249.214 115.380 146.628 342.603 186.688 471.981 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 241.333 767.091 356.787 530.312 790.948 1,181.882 1,342.025 2,360.757 4,163.213 7,343.858 Present Value of Annuity of $1 Periods 1% 2% 3% 4% 1 0.990 0.980 0.971 0.962 2 1.970 1.942 1.913 1.886 5% 0.952 1.859 3 2.941 2.884 2.829 2.775 2.723 2.673 4 3.902 3.808 3.717 3.630 3.546 3.465 5 4.853 4.713 4.580 4.452 4.329 4.212 6% 8% 10% 12% 14% 16% 18% 0.943 0.926 0.909 0.893 0.877 0.862 0.847 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 2.577 2.487 2.402 2.322 2.246 2.174 2.106 3.312 3.170 3.037 2.914 2.798 2.690 2.589 3.993 3.791 3.605 3.433 3.274 3.127 2.991 20% 0.833 6 5.795 5.601 5.417 5.242 5.076 7 6.728 6.472 6.230 6.002 8 7.652 7.325 9 8.566 10 9.471 8.983 7.020 6.733 8.162 7.786 7.435 8.530 8.111 5.786 6.463 6.210 7.108 6.802 7.722 7.360 6.710 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 5.582 5.206 4.868 4.564 4.288 4.039 3.812 3.605 5.747 5.335 4.968 4.639 4.344 4.078 3.837 6.247 5.759 5.328 4.946 4.607 4.303 4.031 6.145 5.650 5.216 4.833 4.494 4.192 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 5.938 5.453 5.029 4.656 4.327 6.194 5.660 5.197 4.793 4.439 6.424 5.842 5.342 4.910 4.533 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 20 18.046 16.351 14.877 13.590 12.462 25 22.023 19.523 17.413 15.622 14.094 11.470 9.818 8.514 12.783 10.675 9.077 7.843 7.367 6.628 6.002 5.468 5.008 4.611 7.606 6.811 6.142 5.575 5.092 4.675 7.469 6.623 5.929 5.353 4.870 6.873 6.097 5.467 4.948 30 40 25.808 22.396 19.600 17.292 15.372 13.765 11.258 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.427 8.055 9.779 8.244 7.105 7.003 6.177 6.233 5.517 4.979 5.548 4.997 Present Value of $1 Periods 1% 2% 3% 4% 5% 1 0.990 0.980 0.971 0.962 2 0.980 0.961 0.943 3 0.971 0.942 0.915 0.889 0.864 6% 8% 10% 12% 14% 16% 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.925 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.840 0.794 18% 20% 0.847 0.833 0.718 0.694 4 0.961 0.924 0.888 0.855 0.823 0.792 0.735 5 0.951 0.906 0.863 0.822 0.784 0.747 0.681 0.751 0.712 0.675 0.641 0.683 0.636 0.592 0.552 0.621 0.609 0.579 0.516 0.482 0.567 0.519 0.476 0.437 0.402 6 0.942 0.888 0.837 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0.410 LOGO 2315 2234 7 0.933 0.871 0.813 0.760 0.711 0.665 0.583 0.513 0.452 0.370 0.400 0.354 0.314 0.335 8 0.923 0.853 0.789 0.731 0.677 0.627 0.540 0.467 0.404 9 0.914 0.837 0.766 0.703 0.645 0.592 0.500 0.424 0.361 0.279 0.351 0.305 0.266 0.233 0.308 0.263 0.225 0.194 10 0.905 0.820 0.744 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 11 0.896 0.804 0.722 0.650 0.585 0.527 0.429 0.350 0.879 0.887 0.788 0.773 0.701 0.625 0.557 0.497 0.397 0.319 0.681 0.601 0.530 0.469 0.368 0.290 14 0.870 0.758 0.661 0.577 0.505 0.442 0.340 0.861 0.743 0.642 0.555 0.481 0.417 0.315 0.239 0.287 0.237 0.195 0.162 0.257 0.208 0.168 0.229 0.182 0.145 0.116 0.263 0.205 0.160 0.125 0.183 0.140 0.108 0.135 0.137 0.112 0.093 0.099 0.078 0.084 0.065 20 0.820 0.673 0.554 0.456 0.377 0.312 0.215 25 0.780 0.610 0.478 0.375 30 0.742 0.552 40 0.672 0.453 0.295 0.412 0.308 0.231 0.307 0.208 0.142 0.149 0.233 0.146 0.092 0.059 0.174 0.099 0.057 0.033 0.097 0.046 0.022 0.011 0.104 0.073 0.051 0.038 0.024 0.016 0.010 0.020 0.012 0.007 0.004 0.005 0.003 0.001 0.001 0.037 0.026 Future Value of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 12345 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 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 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 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 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 689S 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 7 1.072 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.211 2.502 2.826 3.185 3.583 1.083 1.172 1.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 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 10 1.105 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1225 2223 11 1.116 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 13 1.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 14 1.149 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 1.161 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 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 25 1.282 1.641 2.094 2.666 3.386 4.292 6.848 10.835 17.000 26.462 40.874 62.669 95.396 30 1.348 1.811 2.427 3.243 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237.376 40 1.489 2.208 3.262 4.801 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,469.772