The local supermarket is considering investing in self-checkout kiosks for its customers. The self-checkout kiosks will cost $47,000 have no residual value. Management expects the equipment to result in net cash savings over three yeard as customers grow accustomed to using the new technology: $16,000 the first year; $19,000 the second year; $27,000 the third year. The company has already determined that the net present value of the investment at a 14% discount rate is $(132). What is the approximate internal rate of return (IRR) of the kiosk investment? Part 1: Since the NPV at 14% is (positive or negative), the IRR must be (higher than or lower than) 14%. *Please select the correct word in parentheses* Part 2: Now calculate the NPV at 12%. (Round your answer to the nearest whole dollar. Use parentheses or a minus sign for a negative NPV.) The NPV is $_____________. The NPV is (positive or negative) at 12%. Therefore, the IRR must be (less than 14%, between 14% and 12%, or greater than 12%). Please label which part of the question you are answering, and please refrain from partially answering the question. Thank you!

Present Value of Annuity of $1 Periods | 1% 2% 396 4% 5% 6% 8% 1096 | 12% | 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 9.7879.2538.7608.3067.8877.1396.4955.9385.453 5.029 4.656 4.327 12 11.255 10.575 9.9549.3858.863 8.3847.5366.8146.1945.660 5.1974.793 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 5.575 5.092 4.675 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