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Ritter Razors is considering an equipment investment that will cost $960.000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1:

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Ritter Razors is considering an equipment investment that will cost $960.000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $502,000; Year 2: $396,000; and Year 3: $302,000. Ritter 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 Ritter'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 SI Periods 1% 2% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 0.990 0.980 0.971 0.962 0.952 0943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.9701.942 1913 1.886 1.859 1.833 1.783 1.736 1.6901.647 1.605 1.566 1.528 Period 3 2.9412.884 2.829 2.775 2.723 2.673 2.377 2.487 2.402 2.322 2.246 2.174 2.106 Period 43.902 3.808 3.7173.630 3.546 3.465 3.312 3.1703.037 2.914 2.798 2.6902.589 Period 5 4.853 4.713 4.580 4.452 4.329 | 4.212 3.993 3.7913.605 3.433 3.274 3.127 2.991 Period 65.795 5.601 5.417 5.2425.0764917 4.623 4.355 4.111 3.8893.685 3.498 3.326 Period 76.728 6.4726.2306.002 5.786 5.5825 206 4.8684.564 4.288 4.039 3.812 3.605 Period 87.652 7.3257.020 6.733 6,463 | 6.210 5.7475.335 4.968 4.639 4.344 | 4.0783.837 Period 98.5668.1627.786 7.435 7.108 6.802 6 247 5.759 5.32849464.607 4.303 4.031 Period 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.6505.216 4,833 4.494 4.192 10 Period 1110.368 9.7879.2538.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 11.255 10.575 9.9549.3858.863 8.384 7.536 6.814 6.1945.6605.1974.793 4.439 12 Period 12.134 11.34810.6359.986 | 9.3948.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 13 Period 13,004 12.106.11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.0025.468 5.0084611 14 Period 13.865|12.849|11.938|11.11810.380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 15 Period 18.046 16.35 14.877|13.590 12.462|11.470 9.818 8.5147.469 6.623 5.929 5.353 4.870 20 Period 22.023 19.52317.41315.622 14.094|12.783 10.675 9,077 7.8436.8736.097 5.467 4.948 25 25.80822.39619.600 17.292 15.372 13.765 11.25819.4278.0557.0036.1775.517 4.979 30 Period 32.835 27.35523.1119.793 17.15915.046 11.9259.7798.244 7.106.233 5.548 4.997 40 Period Print Done Enter any number in the edit fields and then click Check Answer. 4 parts Clear All Check Answer remaining i Reference Periods 1% Period 1 1.010 Period 2 1,020 Period 3 1.030 Period 4 1.041 Period 5 1.051 Period 6 1.062 Period 7 1.072 Period 8 1.083 Period 9 1.094 Period 10 1.105 Future Value of si 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 1.200 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1.440 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.643 1.728 1.082 1.126 1.170 1.216 1.262 1.360 1.464 1.574 1.689 1.811 1.939 2.074 1.104 1.159 1.217 1.276 1.338 1.469 1.611 1.762 1.925 2.100 2.288 2.488 1.126 1.194 1.265 1.340 1.419 1.587 1.772 1.974 2.195 2.436 2.700 2.986 1.149 1.230 1.316 1.407 1.504 1.714 1.949 2.2112.502 2.826 3.185 3.583 1.1721.267 1.369 1.477 1.594 1.851 2.144 2.476 2.853 3.278 3.759 4.300 1.195 1.305 1.423 1.551 1.689 1.999 2.358 2.7733.252 3.803 4.435 5.160 1.219 1.344 1.480 1.629 1.791 2.159 2.594 3.106 3.707 4.411 5.234 6.192 1.243 1.384 1.539 1.710 1.898 2.332 2.853 3.479 4.226 5.117 6.176 7.430 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10.699 1.319 1.513 1.732 1.980 2.261 2.937 3.797 4.887 6.261 7.988 10.147 12.839 1.346 1.558 1.801 2.079 2.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 1.486 1.806 2.1912.653 3.207 4.661 | 6.727 9.646 13.743 19.461 27.393 38,338 1.641 2.094 2.666 3.386 4.292 6.848 10.83517.000 26.462 40.874 62.669 95.396 1.811 2.427 3.243 4.322 5.743 10.06317.44929.960 50.950 85.850 143.371 237.376 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 Period 11 1.116 Period 12 1.127 Period 13 1.138 Period 14 1.149 Period 15 1.161 Period 20 1.220 Period 251.282 Period 30 1.348 Period 40 1.489 Print Done 0 Reference Future Value of Annuity of $1 Periods 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% Period 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 Period 2 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 Period 3 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 5.3095.416 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 7.336 7.716 8.115 8.536 8.977 9.442 9.930 Period 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 Period 8 8.286 8.583 8.8929.214 | 9,549 9.897 10.637 11.436 12.300 13.233 14.240 15.327 16.499 Period 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 Period 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 Period 11 11.567 12.169 12.80813.486 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 18.97721.384 24.133 27.271 30.850 34.931 39.581 Period 1313.809 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 14.94715.974 17.08618.292 19.599 21.015 24.21527.97532.393 37.581 43.672 50.818 59.196 Period 15 16.097|17.293 18.599 20.02421.57923.276 27.15231.772 37.280 43.842 51.660 60.965 72.035 Period 20 22.01924.297 26.870 29.778 33,066 36.786 45.762 57.275 | 72.052 91.025 115.380 146,628 186.688 Period 25 28.243 32.030 36.459 41.646 47.727 | 54.865 73.106 98.347 133.334 181.871 249.214 342.603 471.981 Period 30 34.785 40.568 47.57556.08566.43979.058 113.283 164.494 241.333 356.787 530.312790.948 1.181.882 Period 40 48.88660.402 | 75.401 95.026 120.800 154.762 259.057|442.593 767.0911,342.025 2.360.757|4,163.2137,343.858 Print Done 0 Reference X 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 1.504 1,714 1.949 2.211 2.502 2.826 3.185 3.583 Period 8 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 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 3.707 4,411 5.234 6,192 Period 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 Period 121.127 1.268 1.426 1.601 1.796 2.012 2.518 3.138 3.896 4.818 5.936 7.288 8.916 Period 131.138 1.294 1.469 1.665 1.886 2.133 2.720 3.452 4.363 5.492 6.886 8.599 10,699 Period 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 Period 151.161 1.346 1.558 1.801 2.0792.397 3.172 4.177 5.474 7.138 9.266 11.974 15.407 Period 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 Period 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 Period 30 1.348 1.811 2.427 3.243 4.322 5.743 10.06317.44929.960 50.950 85.850 143.371 237.376 Period 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 Print Done

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