The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,500 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: $14,000 the first year; $21,000 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 $(461). What is the approximate internal rate of return (IRR) of the kiosk investment? Part 1: Word Options for Fill in the Blank: Since the NPV at 12% is (positive, negative), the IRR must be (lower than, higher than) 12%. The NPV is (positive, negative) at 10%. Therefore, the IRR must be (less than 12%, between 12% and 10%, greater than 10%). Please refrain from only partially answering the question. Thank you!

Present Value of Annuity of $1 Periods l 196 296 3% 496 5% 6% 896 | 1096 | 1296 | 1496 | 1696 | 1896 | 2096 0.990 0.980 0.971 0.9620.9520.9430.9260.909 0.893 0.8770.862 0.847 0.833 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.7361.6901.6471.605 1.5661.528 3 2.9412.884 2.829 2.775 2.723 2.673 2.5772.4872.4022.3222.246 2.174 2.106 43.902 3.808 3.717 3.630 3.546 3.465 3.3123.1703.0372.9142.798 2.690 2.589 5 4.853 4.713 4.580 4.452 4.329 4.2123.9933.7913.6053.4333.2743.1272.991 6 5.7955.601 5.417 5.2425.076 4.9174.6234.3554.1113.8893.685| 3.498|3.326 7 6.7286.472 6.230 6.002 5.7865.5825.2064.8684.5644.2884.0393.812 3.605 87.6527.3257.020 6.733 6.463 6.210 |5.7475.3354.9684.6394.3444.078| 3.837 9 8.566 8.162 7.7867.435 7.1086.802 6.2475.7595.3284.9464.6074.303 4.031 10 9.4718.983 8.530 8.111 7.7227.360 6.7106.1455.6505.2164.8334.4944.192 11 10.368 9.7879.2538.760 8.306 7.8877.1396.4955.9385.4535.0294.6564.327 12 11.255 10.575 9.9549.3858.863 8.3847.5366.8146.1945.6605.1974.793 4.439 13 12.134 11.348 10.635 9.9869.3948.8537.9047.1036.4245.842 5.342 4.910 4.533 14 13.004 12.106 11.296| 10.563 9.8999.2958.2447.3676.628 6.002 5.4685.0084.611 15 13.865 12.849 11.938 11.118| 10.380 9.7128.5597.6066.8116.142 5.5755.0924.675 20 18.046 16.351 14.877 13.590 12.462 11.4709.8188.5147.4696.623 5.929 5.353 4.870 25 22.023 19.523 17.413 15.622 14.094 12.783 10.6759.0777.8436.873 6.0975.4674.948 30 25.808 22.396 19.600 17.292 15.372 13.765 11.2589.4278.0557.003 6.1775.5174.979 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.7798.2447.105 6.233 5.548 4.997