Chandler Chairs is considering an equipment investment that will cost $935,000. Projected net cash inflows over the equipment's three-year life are as follows. Year 1. $488 000 Year 2 $396,000 and Year 3: $292,000. Chandler wants to know the equipment's IRR (Click the icon to view the present value annuity table.) (Click the icon to view the 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 Chandler's hurdle rate of 10% 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 10% 12% and 14% (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values ) The NPV at 10% is Present Value of Annuity of $1 16% Periods Period 1 Period 2 Period 3 Period 4 Period 5 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.9090.893 0.877 1.970 1.942 1.9131.886 1.859 1.833 1.783 1.736 1.690 1.647 2.941 2.884 2.8292.775 2.723 2.673 2.577 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 0.862 1.605 2.246 2.798 3.274 Period 6 5.795 5.601 5.417 5.2425.076 4.917 4.623 4.355 4.111 3.889 3.685 Period 7 6.728 6.472 6.230 6.0025.786 5.5825 206 4.8684.564 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 7.4357.108 6.802 6.247 5.759 5 3284946 4.607 Period 10 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6 495 5.938 5.453 5.029 Period 12 11.255 10.575 9.95493858.863 8.384 7.536 6.8146.194 5.660 5.197 Period 13 12.134 11.348 10.635 9.9869.3948.853 7.904 7.103 6.424 5.842 5.342 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.3676.628 6.0025.468 Period 15 13.865 12.849 11.938 11.11810.380 9.712 8.559 7.606 6.811 6.142 5,575 Period 20 18.046 16.351 14.877 13:590 12.462 11.470 9.818 8.514 7.4696.623 5.929 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.0777 843 6.873 6.097 Period 30 25,808 22.396 19.600 17.292 15.372 13.765 11.258 9.4278.055 7.003 6.177 Period 40 32.835 27.355 23.115 19.793 17 159 15.046 11.925 9.779 8.244 7.105 6.233 Print Done Future Value of Annuity of $1 Periods 2% 4% 5% 6% 8% 12% 1% 1.000 Period 1 1.000 Period 2 Period 3 Period 4 Period 5 1.000 2.020 3.060 4.122 5.204 2.010 3.030 4.060 5.101 3% 1.000 2.030 3.091 4.184 5.309 1.000 2.040 3.122 4.246 5.416 1.000 2.080 3.246 1.000 2.060 3.184 4.375 5.637 2.050 3.153 4.310 5.526 10% 1.000 2.100 3.310 4.641 6.105 1.000 2.120 3.374 4.779 6.353 14% 1.000 2.140 3.440 4.921 6.610 4.506 5.867 Period 6 6.152 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 Period 7 7.214 7.434 7.662 7.898 42 8.394 8.923 9.487 10.089 10.731 Period 8 8.286 8,583 8.892 9.214 9.549 9.897 10.637 11 436 12.300 13.23 Period 9 9.369 9.755 10.159 10.583 11.027 11491-12.488 13.579 14.776 16.08! Period 10 10.462 10.950 11.464 12.006 12.578 13 181 14.487 | 15.937 | 17549 19.331 Period 11 11.567 12.169 12.80813.486 14.207 14.972 16.645 18.531 20.655 23.04 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21 384 24.133 27 27 Period 13 13.809 14.680 15.618 | 16.627 17.713 18.882 21.495 2452328.029 3208 Period 14 14.94715.974 17.086 18.292 19.599 21.015 24.215 27.975 32 393 37.58 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 43.842 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 | 72052 91.02 Period 25 28.243 32.03036.459 41.646 47.727 54.865 73.106 98.347 133.334 181.87 Period 30 34.785 40.568 47.575 | 56.085 66.43979.058 113 283 164 494241.333 356.78 Period 40 48.886 60.402 75.401 95.026 120.800 154.762259.057442.593767091 1,342.0 Print Done Present Value of $1 . 1% 4% 10% Periods Period 1 Period 2 Period 3 Period 4 Period 5 0.990 0.980 0.971 0.961 0.951 2% 3% 5% 0.9800.971 0.962 0.952 0.961 0.943 0.925 0.907 0.942 0.915 0.889 0.864 0.924 0.888 0.855 0.823 0.906 0.863 0.822 0.784 6% 8% 0.943 0.926 0 890 0.857 0.840 | 0.794 0.792 0.735 0.747 0.681 0.909 0.826 0.751 0.683 0.621 12% 14% 16% 0.893 0.877 0.86 0.797 0.769 0.74 0.712 0.675 0.64 0.636 0.592 0.55 0.567 0.519 0.47 Period 6 0.942 0.888 0.837 0.790 Period 7 0.933 0.871 0.813 0.760 Period 8 0.923 0.853 0.789 0.731 Period 9 0.914 0.837 0.766 0.703 Period 100.905 0.820 0.744 0.676 0.746 0.711 0.677 0.645 0.614 0.705 0.630 0.665 0.583 0.627 0.540 0.592 0.500 0.558 0.463 0.564 0.507 0.456 0.41 0.513 0.452 0.400 0.35 0.467 0.404 0.351 0.30 0.424 0.361 0.308 0.26 0.386 0.322 0 270 0.22 Period 110.896 0.804 0.722 0.650 0.585 Period 120.887 0.788 0.701 0.625 0.557 Period 130.879 0.773 0.681 0.601 0.530 Period 14 0.8700.758 0.661 0.577 0.505 Period 15 0.861 0.743 0.642 0.555 0.481 0.527 0.429 0.350 0,287 0237 0.19 0.497 0.397 0.319 0.257 01208 0.16 0.469 0.368 0.290 0.229 0.182 0.14 0.442 0.340 0.263 0.205 0.160 0.12 0.417 0.315 0.239 0.183 0 140 0.10 Period 20 0.820 0.673 0.554 0.456 0.377 Period 25 0.780 0.610 0.478 0.375 0.295 Period 30 0.742 0.552 0.412 0.308 0.231 Period 401 0.672 0.453 0.307 0.208 0.142 0.312 0.215 0.149 0.233 0.146 0.092 0.174 0.099 0.057 0.097 0.046 0.022 0.104 0.059 0.033 0.011 0.073 0.038 0.020 0.05 0.02 0.01 0.00 0.005 Print Done Future Value of $1 1% 2% 4% 5% 6% 8% 10% 12% 14% 1.010 1.050 1.080 1.100 1.120 1.140 1.020 1.166 Periods Period 1 Period 2 Period 3 Period 4 Period 5 1.254 3% 1.030 1.061 1.093 1.126 1.159 1.020 1.040 1.061 1.082 1.104 1.060 1.124 1.191 1.040 1.082 1.125 1.170 1.217 1.103 1.158 1.030 1.405 1.210 1 331 1.464 1.611 1.300 1.482 1.689 1.925 1.041 1.260 1.360 1.469 1.262 1.216 1.276 1.574 1.762 1.051 1.338 1.062 1.126 1.194 1.265 1.340 1974 Period 6 Period 7 Period 8 Period 9 Period 10 1.230 1.267 1.407 1477 1.072 1.083 1.094 1.105 1.149 1.172 1.195 1.219 2.211 2.476 1.316 1.369 1.423 1.480 1.419 1587 1.504 1.714 1.594 1.851 1.6891.999 1.791 2.159 1.772 1.949 2.144 2.358 2.594 2.195 2.502 2.853 3.252 3.707 1.305 1.551 2.773 1.344 1.629 3.106 1.116 1.710 2.332 1.243 1.268 1.384 1.426 3.479 3.896 1.539 1.601 1.665 4.226 4.818 Period 11 Period 12 Period 13 Period 14 Period 15 1.796 1.127 1.138 1.294 1.886 1.980 1.898 2.012 2 133 2.261 2.397 1.469 1.513 1.558 2.518 2.720 2.937 3.172 2.853 3.138 3.452 3.797 4.177 1.149 1.161 1.319 1.346 1.732 1.801 4.363 4.887 5.474 5.492 6.261 7.138 2.079 Period 20 Period 25 Period 30 Period 40 1.220 1.282 1.348 1.489 1.486 1.641 1.811 2208 1.806 2.094 2.427 3.262 2.191 2.666 3.243 4.801 2.653 3.386 4.322 7.040 3.207 4.661 6.727 9.646 13.743 4.292 6.848 10.835 17.000 26.462 5.743 10.063 17 449 29.960 50.950 10.286 21.725 45.25993 051 1188 884 Print Done Chandler Chairs is considering an equipment investment that will cost $935,000 Projected net cash inflows over the equipment's three-year life are as follows: Year 1 $488,000, Year 2 $396,000, and Year 3. $292,000. Chandler wants to know the equipment's IRR. (Click the icon to view the present value annuity table) (Click the icon to view the 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 (HintUse Chandler's hurdle rate of 10% 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: 10%, 12%, and 14% (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values) The NPV at 10% is