The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,000 and have no residual value. Management expects the equipment to result in net cash savings over three years as customers grow accustomed to using the new technology: $15,000 the first year; $22,000 the second year; $25,000 the third year. The company has already determined that the net present value of the investment at a 12% discount rate is $1,729. What is the approximate internal rate of return (IRR) of the kiosk investment? (Click the icon to view the present value of an annuity table.) (Click the icon to view the present value table.) (Click the icon to view the future value of an annuity table.) (Click the icon to view the future value table.) Since the NPV at 12% is positive, the IRR must be higher than 12%. Now calculate the NPV at 14%. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV.) The NPV is Present Value of Annuity of $1 as rate Periods 6.728 C 7.652 1% Period 1 0.990 0.980 0.971 0.962 Period 2 1.970 1.942 1.913 1.886 Period 3 2.941 2.884 2.829 2.775 Period 4 3.902 3.808 3.717 3.630 Period 5 4.853 4.713 4.580 4.452 Period 6 5.795 Period 7 Period 8 Period 9 8.566 2% 3% 4% 4.329 4.212 5% 6% 8% 10% 12% 14% 16% 18% 0.952 0.943 0.926 0.909 0.893 0.877 1.859 1.833 1.783 1.736 1.690 1.647 2.723 2.673 2.577 2.487 2.402 2.322 3.546 3.465 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 20% 0.862 0.847 0.833 1.605 1.566 1.528 2.246 2.174 2.106 2.991 5.601 5.417 5.242 5.076 4.917 6.472 6.230 6.002 5.786 5.582 W Period 10 9.471 ne 4.623 4.355 4.111 3.889 5.206 4.868 4.564 4.288 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4.344 8.162 7.786 7.435 7.108 6.802 6.247 5.759 5.328 4.946 4.607 4.303 4.031 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 4.833 4.4941 4.192 Period 11 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 5.029 4.656 4.327 Period 12 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 5.197 4.793 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 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 7.367 6.628 6.002 5.468 Period 15 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 5.575 6.623 5.929 5.353 4.870 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.873 6.097 5.467 4.948 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 Period 30 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 6.177 5.517 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 3.685 3.498 4.039 3.326 3.812 3.605 4.078 3.837 PV.) 4.439 4.910 4.533 5.008 4.611 5.092 4.675 4.979 6.233 5.548 4.997 S Future Value of Annuity of $1 ate Periods Period 1 1% 2% 3% 4% 5% 6% 1.000 1.000 1.000 1.000 1.000 8% 10% 12% 1.000 1.000 1.000 1.000 14% 16% 18% 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 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 Period 4 4.060 4.122 4.184 4.246 4.310 Period 5 5.101 5.204 5.309 5.416 5.526 Period 6 6.152 4.641 4.779 4.921 5.066 5.637 5.867 6.105 6.353 6.610 6.877 7.154 6.308 6.468 6.633 6.802 6.975 7.336 7.716 8.115 8.536 8.977 9.442 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 Period 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 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 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 Period 11 11.567 12.169 12.808 13.486 14.207 14.972 16.645 18.531 20.655 Period 12 12.683 13.412 14.192 15.026 15.917 16.870 18.977 21.384 24.133 Period 13 13.809 14.680 15.618 16.627 17.713 18.882 21.495 24.523 28.029 Period 14 14.947 15.974 17.086 18.292 19.599 21.015 24.215 27.975 32.393 Period 15 16.097 17.293 18.599 20.024 21.579 23.276 27.152 31.772 37.280 4.375 4.506 5.215 PV.) 23.045 27.271 25.733 28.755 30.850 34.931 32.089 37.581 43.672 50.818 43.842 51.660 60.965 Period 20 22.019 24.297 26.870 29.778 33.066 36.786 45.762 57.275 72.052 91.025 115.380 146.628 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 Period 30 34.785 40.568 47.575 56.085 66.439 79.058 113.283 164.494 241.333 356.787 530.312 790.948 Period 40 48.886 60.402 75.401 95.026 120.800 154.762 259.057 442.593 767.091 1,342.025 2,360.757 4.163.21 36.786 42.219 accu alrea Present Value of $1 4% 5% 6% 8% 10% 12% 14% 16% 18% 20% 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 0.907 0.890 0.857 0.826 0.797 0.769 0.743 0.718 0.694 0.864 0.840 0.794 0.751 0.712 0.675 0.641 0.609 0.579 0.823 0.792 0.735 0.683 0.636 0.592 0.552 0.516 0.482 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.402 0.746 0.705 0.630 0.564 0.507 0.456 0.410 0.370 0.335 0.760 0.711 0.665 0.583 0.513 0.452 0.400 0.354 0.314 0.279 0.731 0.677 0.627 0.540 0.467 0.404 0.351 0.305 0.266 0.233 0.703 0.645 0.592 0.500 0.424 0.361 0.308 0.263 0.225 0.194 0.676 0.614 0.558 0.463 0.386 0.322 0.270 0.227 0.191 0.162 0.650 0.585 0.527 0.429 0.350 0.287 0.237 0.195 0.162 0.135 0.625 0.557 0.497 0.397 0.319 0.257 0.208 0.168 0.137 0.112 0.601 0.530 0.469 0.368 0.290 0.229 0.182 0.145 0.116 0.093 0.505 0.442 0.340 0.263 0.205 0.160 0.125 0.099 0.078 0.481 0.417 0.315 0.239 0.183 0.140 0.108 0.084 0.065 0.377 0.312 0.215 0.149 0.104 0.073 0.051 0.037 0.026 0.375 0.295 0.233 0.146 0.092 0.059 0.038 0.024 0.016 0.010 0.231 0.174 0.099 0.057 0.033 0.020 0.012 0.007 0.004 0.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.001 of ret Periods 1% Period 1 0.990 0.980 2% 3% 0.971 Period 2 0.980 0.961 0.943 0.925 Period 3 0.971 0.942 0.915 0.889 Period 4 0.961 0.924 0.888 0.855 Period 5 0.951 0.906 0.863 0.822 0.784 Period 6 0.942 0.888 0.837 0.790 Period 7 0.933 0.871 0.813 Since Now Period 8 0.923 Period 91 0.914 Period 10 0.905 Period 11 0.896 The Period 12 0.887 0.853 0.789 0.837 0.766 0.820 0.744 0.804 0.722 0.788 0.701 Period 13 0.879 0.773 0.681 Period 14 0.870 0.758 0.661 0.577 Period 15 0.861 0.743 0.642 0.555 Period 20 0.820 0.673 0.554 0.456 Period 25 0.780 0.610 0.478 Period 30 0.742 0.552 0.412 0.308 Period 40 0.672 0.453 0.307 0.208 as rate PV) CC re fre 5 Future Value of $1 ate: Periods 1% 2% Period 1 1.010 Period 2 1.020 Period 3 1.030 Period 4 1.041 Period 5 1.051 1.170 1.216 1.217 1.276 1.338 1.469 3% 4% 5% 6% 8%- 10% 12% 14% 16% 18% 1.020 1.030 1.040 1.050 1.060 1.080 1.100 1.120 1.140 1.160 1.180 13 1.040 1.061 1.082 1.103 1.124 1.166 1.210 1.254 1.300 1.346 1.392 1. 1.061 1.093 1.125 1.158 1.191 1.260 1.331 1.405 1.482 1.561 1.082 1.126 1.262 1.360 1.464 1.574 1.689 1.104 1.159 1.762 1.925 2 1.643 1. 1.811 1.939 2 1.611 2.100 2.288 2. Period 6 Period 7 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. 1.072 1.149 1.230 1.316 1.407 1.504 1.714 Sing 1.949 22111 2.502 2.826 3.185 3. 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 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. Nov 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. PV.) Period 11 1.116 1.243 1.384 1.539 1.710 The Period 12 1.127 1.268 1.426 1.601 Period 13 1.138 1.294 1,469 1.665 Period 14 1.149 Period 15 1.161 1.319 1.513 1.732 1.346 1.558 1.801 1.898 2.332 2.853 1.796 2.012 2.518 3.138 3.896 1.886 2.133 2.720 1.980 2.261 2.937 2.079 2.397 3.479 4.226 4.818 5.936 5,117 6.176 7 7.288 8. 3.452 4.363 5.492 6.886 8.599 10 3.797 4.887 6.261 7.988 10,147 12 3.172 4.177 5.474 7.138 9.266 11.974 15 Period 201 1.220 Period 25 1.282 Period 30 1.348 1.811 Period 40: 1.489 2.208 1.641 1.486 1.806 2.191 2.094 2.666 4.661 2.427 3.243 3.262 4.801 2.653 6.727 9.646 13.743 19.461 27.393 3.207 6.848 10.835 17.000 26.462 40.874 62.669 3.386 4.292 4.322 5.743 10.063 17.449 29.960 50.950 85.850 143.371 237 7.040 10.286 21.725 45.259 93.051 188.884 378.721 750.378 1,46 38 95