The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $46,500 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 $16.000 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 14% discount rate is $1.325. 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 14% is the IRR must be Now calculate the NPV at ranswer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV) negative The NPV is $ positive The NPV is Vst 16%. Therefore, the IRR must be * Reference Present Value of Annuity of $1 18% 0.862 18% 0.847 20% 0.833 0.925 087 10111214% 0.909 10893 1.736 1.690 1.647 2.402 2.322 2487 3.120 3.791 & 4368 5.335 6199 4908 4* 9 0.952 1886 1.859 1833 2.775 2.723 3.630 4.452 4.329 3.993 5076 5.786 6.733 6.463 6.210 7108 6.802 6.247 8.111 7.722 7.360 5710 8.760 8.306 7.887 9.385 8863 8.384 7.534 9.986 9.394 8.853 7.904 10.563 9.899 9.2958 244 11.118 10.380 9742 8559 13.590 12.462 11 470 15.622 14.094 12783 10 675 17 292 15 372 13.765 11 258 19 793 17 159 15 046 11 925 7435 7139 388338 10.368 9.787 11255 10.575 12134 11.348 13.004 12.106 9.253 9.954 10.635 11 296 11.938 14.877 17 413 19.500 22 115 3.606 4.111 4554 5.328 5.650 5.938 6.194 6.424 6.628 6.811 7.469 7.843 8.055 7.606 5.453 5 660 5842 6.002 6.142 6.623 6.873 7.003 7.105 5.575 5.092 5.353 9818 5928 18.04 22.023 16.351 19.523 22.396 27385 9.077 9.427 5.46 4.979 5517 5.543 32.35 4992 Print Done The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $48.500 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: $10,000 the first year: 522,000 the second year: 525,000 the third year. The company has already determined that the net present value of the investment at a 14% discount rate is $1,325. 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 14% is the IRR must be 14% Now calculate the NPV at 16% (Round your answer to ollar. Use parentheses or a minus sign for a negative NPV.) lower than higher than The NPV is The NPV is at 16%. Therefore, the IRR must be * Reference Future Value of Annuity of $1 Periods 3% 9% 12% 4% 1.000 1.000 1.000 1.000 1000 1 000 10% 1.000 2.100 3310 2.030 2040 2.050 2.050 3091 3153 3184 3440 3.640 2120 3374 4.779 6.353 3.122 4246 5 416 2375 2% 1.000 2.020 3.060 4.122 5.204 6.308 7.434 8.583 9.755 10.950 5.309 5.637 6.105 6.975 3536 1.000 2.010 3.030 2.000 5.101 6.152 7.214 8.286 9369 10.462 11 567 12.683 13.809 14.947 16.097 7 662 8.394 9.897 11.491 13.181 2090 3.245 4 506 5.867 7.336 8.923 10637 12.488 14.487 16645 18977 21 495 24 215 27.152 45 762 73.100 113.283 259.057 6.468 6.633 7.898 8.892 9.214 10.159 10.583 11464 12.006 12.306 13.486 14. 192 15.026 15.618 16.627 17086 18.292 18.599 20.024 26.870 29.778 36.459 41.646 47 575 56.085 75.40195 026 + 4.310 5.526 6.802 8.142 9.549 11027 12.578 14207 15.917 17.713 19.500 21579 33.666 47.727 66 439 120.800 12.169 13.412 14.680 15.974 17 293 24 297 32 030 40.568 60 402 16% 18% 20% 1 000 1.000 2.140 2.160 2.180 2.200 3.506 3572 4921 5.066 5.215 5.368 6.610 6.877 7 154 7.442 8.977 9.442 9.930 10.730 11.414 12.142 12.916 13233 14240 15.327 16.499 16085 17.519 19.086 20.799 19.337 21.321 23.521 25.959 23.045 25.733 28.755 32.150 27.271 30.850 34 931 39,581 32.089 36 786 42.219 48 497 37.581 43.672 50.818 59.196 43.842 51660 60.965 72.035 91.025 115 380 146.628 185 688 181.871 249.214 342 603 471.981 356.787 530.312790.948 1,181 882 1,342 0252,360.757 4.163.213 z 343 858 7.716 2.115 9.487 10.089 11.436 12 300 13 579 14.776 15.937 17.549 18.531 20,655 21 384 24.133 24.523 28.029 27.975 32 393 31.772 37 280 57 275 72052 98 347 133 334 164.494 241,333 442.593767.091 14.972 16,870 18 3.02 21 015 23.276 36.786 54.865 79.058 154.762 $XDB 22.019 28.243 34785 48.886 Print Done The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $46,500 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 $16.000 the first year: $22.000 the second year: 325,000 the third year. The company has already determined that the net present value of the investment at a 14% discount rate is $1.325. 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 14% is the IRR must be Now calculate the NPV at 10% (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV.) . The NPV is $ D The NPV is at 10%. Therefore, the IRR must be negative Ret positive Periods 0.314 Qa 20% 0.833 0.694 0.579 0.482 0402 0.335 0.279 0.233 0.194 0.162 0.135 0.112 0.093 0.078 0.065 OOOO 1% 2% 3% 0.990 0.980 0.971 0.9800.961 0.943 0.971 0.942 0.915 0.961 0.924 0.888 0.951 0.906 0.863 0.942 0.888 0.837 0.871 0.813 0.853 0.789 0.837 0.766 0.820 0.744 0.8950 8040.722 0.887 0.788 0.701 0.879 0.773 0.681 0.870 0.758 0.661 0.861 0.743 0.642 0.820 0.673 0.554 0.780 0.478 0.742 0.552 0.412 0.672 0.453 0.307 0263 Present Value of $1 4% 5% 6% 8% 10% 12% 14% 10% 19% 0.962 0.952 0.943 0.926 0.0090.893 0.877 0.862 0 847 0.925 0.907 0.890 0.8570.826 0.797 0.769 0.743 0.718 0.889 0.864 0.840 0.794 0.750 0.712 0.675 0.641 0.609 0.855 0.823 0.792 0.735 0 68306350 592 0.552 0.516 0.822 0.784 0.747 0.681 0.621 0.567 0.519 0.476 0.437 0.790 0.746 0.705 0.630 0.564 0.507 0.456 0410 0.370 0.760 0.711 0665 0.583 0.513 0.452 0.400 0.354 0.731 0.677 0.627 0.540 0.467 0.404 0 351 0.305 0.703 0.645 0.592 0 500 0.424 0.361 0.308 0 225 0.676 0.614 0.558 0.463 0.385 0.322 0 270 0.227 0191 0.650 0.585 0.527 0.429 0.350 0.287 0.162 0625 0.557 0.497 0.397 0319 0 257 0 208 0.168 0.137 0.601 0.530 0.4690.368 0 290 0.229 0.182 0.145 0.116 0.577 0.505 0.442 0 3400 263 0.205 0.160 0.125 0.099 0.555 0.481 0.4170 315 0.299 0.1830 140 0.108 0.084 0.456 0.3120215 0.149 0.104 0.073 0.051 0.037 0.375 02950 233 0.146 0.092 0.059 0.038 0.024 0.016 0 308 0.231 0.174 0.099 0.057 0.033 0.020 0.0120.007 0.208 10.142 0.097 0.046 0.022 0.011 0.005 0.003 0.001 0.237 0.026 0 377 0.610 0478 0.010 0.004 0.001 Print Done . - The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $46,500 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: $10,000 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 14% discount rate is $1.325. 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 14% is the IRR must be 14% Now calculate the NPV at 16%. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV.) The NPV is $ The NPV is at 16%. Therefore, the IRR must be less than 14% between 14% and 10% greater than 16% - X 0 Reference Future Value of $1 8% 8% 124 4% 16% 185 Periods 2014 1030 1.060 1.010 1.020 1.030 1.040 1.082 1.125 1.050 1.100 1.440 1.080 1.166 1.061 1.093 1.125 1.159 1.040 1.061 1.082 1.104 1.124 1.191 1262 10 1.100 1.210 1 331 1.454 1.611 1158 1.216 1.276 1254 1405 1.574 1.250 1 360 1.469 1.041 1.728 2074 1.170 1 217 1.392 1.643 1.939 2.288 1.338 1.762 1.051 1.140 1300 1.482 1689 1.925 2.195 2.502 2.853 3.282 1.160 1 346 1.561 1 811 2.100 2.436 2.826 3.278 3.803 1062 1.255 1 340 1.587 1714 1.772 1.949 2.994 3.583 4.300 1.316 1 369 1.504 1.594 1.689 1951 1477 1.551 1.194 1.230 1.267 1.305 1.344 1.394 1.126 1.149 1.172 1.195 1.219 1.243 1.268 480 1.791 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 3.707 6.192 1.710 1.999 2.159 2.332 2.518 2.720 2937 3.172 601 1.974 221 2.476 2.773 3.106 3.479 3.396 4363 4.887 5.474 9.546 17.000 29 950 | 93.051 1.890 2012 2.135 2251 2.397 4226 4.818 5.492 6261 5.117 5.936 636 7.988 9.266 2.700 3.185 3.759 4435 5.234 6.176 7.256 8.599 10.147 11.974 27.393 62.669 143371 750 378 1459 1.565 8.916 10 599 12339 15.407 1.732 1319 1.346 3.797 4.177 1.801 7 138 4551 1 220 1513 1.558 1.806 2094 2427 3.262 1.980 2079 2.653 3.336 4322 7.040 3.207 4.292 2.191 2.666 3.243 4801 1.641 1311 2.20B 6.727 10.335 17.449 45.259 13.743 26.462 50 950 163 34 6 848 10.063 21.725 19.451 40.874 35.850 378 721 1348 95.396 237 376 1469772 5743 10 286 Ente Print Done