Tovar Toasters is considering an equipment investment that will cost $940,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $484,000; Year 2: $404,000, and Year 3: $304,000. Tovar 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 Tovar's hurdle rate of 12% 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: 12%, 14%, and 16%. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.) The NPV at 12% is $ 0 Reference Periods 1 2 3 4 5 co 7 8 9 10 Present Value of Annuity of $1 1% 2% 3% 4% 5% 6% 8% 10% 12% 14% 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3.791 3.605 3.433 5.795 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 6.728 6.472 6.230 6.002 5.786 5.582 5.206 4.868 4.564 4.288 7.652 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 8.5668.162 7.786 7.435 7.108 6.8026.247 5.759 5.328 4.946 9.471 8.983 8.530 8.111 7.722 7.360 6.710 6.145 5.650 5.216 10.368 9.787 9.253 8.760 8.306 7.887 7.139 6.495 5.938 5.453 11.255 10.575 9.954 9.385 8.863 8.384 7.536 6.814 6.194 5.660 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 13.865 12.849 11.938 11.118 10.380 9.712 8.559 7.606 6.811 6.142 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.4696.623 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 25.808 22.396 19.600 17.292 15.372 13.765 11.258 9.427 8.055 7.003 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8.244 7.105 16% 18% 20% 0.862 0.847 0.833 1.605 1.566 1.528 2.246 2.174 2.106 2.798 2.690 2.589 3.274 3.127 2.991 3.685 3.498 3.326 4.039 3.812 3.605 4.344 4.078 3.837 4.607 4.303 4.031 4.833 4.494 4.192 5.029 4.656 4.327 5.197 4.793 4.439 5.342 4.910 4.533 5.468 5.008 4.611 5.575 5.092 4.675 5.929 5.353 4.870 6.097 5.467 4.948 6.177 5.517 4.979 6.233 5.548 4.997 11 12 13 14 15 20 25 30 40 X 1 Reference Present Value of $1 Periods 1 2 3 4 5 1% 0.990 0.980 0.971 0.961 0.951 8% 0.926 0.857 0.794 0.735 0.681 0.630 0.583 0.540 0.500 0.463 10% 0.909 0.826 0.751 0.683 0.621 12% 0.893 0.797 0.712 0.636 0.567 14% 0.877 0.769 0.675 0.592 0.519 16% 0.862 0.743 0.641 0.552 0.476 20% 0.833 0.694 0.579 0.482 0.402 6 7 8 9 10 2% 3% 4% 5% 6% 0.980 0.971 0.962 0.952 0.943 0.961 0.943 0.925 0.907 0.890 0.942 0.915 0.889 0.864 0.840 0.924 0.888 0.855 0.823 0.792 0.906 0.863 0.822 0.784 0.747 0.888 0.837 0.790 0.746 0.705 0.871 0.813 0.760 0.711 0.665 0.853 0.789 0.731 0.677 0.627 0.837 0.766 0.703 0.645 0.592 0.820 0.744 0.676 0.614 0.558 0.804 0.722 0.650 0.585 0.527 0.788 0.701 0.625 0.557 0.497 0.773 0.681 0.601 0.530 0.469 0.758 0.661 0.577 0.505 0.442 0.743 0.642 0.555 0.481 0.417 0.673 0.554 0.456 0.377 0.312 0.610 0.478 0.375 0.295 0.233 0.552 0.412 0.308 0.231 0.174 0.453 0.307 0.208 0.142 0.097 0.564 0.513 0.467 0.424 0.386 0.410 0.354 0.305 0.263 0.227 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.335 0.279 0.233 0.194 0.162 18% 0.847 0.718 0.609 0.516 0.437 0.370 0.314 0.266 0.225 0.191 0.162 0.137 0.116 0.099 0.084 11 12 13 14 15 0.429 0.397 0.368 0.340 0.315 0.215 0.146 0.099 0.046 0.507 0.452 0.404 0.361 0.322 0.287 0.257 0.229 0.205 0.183 0.104 0.059 0.033 0.011 0.350 0.319 0.290 0.263 0.239 0.149 0.092 0.057 0.022 0.456 0.400 0.351 0.308 0.270 0.237 0.208 0.182 0.160 0.140 0.073 0.038 0.020 0.005 0.195 0.168 0.145 0.125 0.108 0.051 0.024 0.012 0.003 0.135 0.112 0.093 0.078 0.065 0.026 0.010 0.004 0.001 20 25 30 40 0.820 0.780 0.742 0.672 0.037 0.016 0.007 0.001 A Reference Periods 4% 1.040 1082 1.125 1.170 1.217 1 265 1.316 1% 1.010 1.020 1.030 1.041 1.051 1.062 1.072 1.083 1.094 1.105 1.116 1.127 1.138 1.149 1.161 1.220 1.282 1.348 1.489 2% 1.020 1.040 1.061 1.082 1.104 1.126 1.149 1.172 1 195 1.219 1.243 1 268 1.294 1.319 1.346 1.486 1.641 1.811 2208 3% 1.030 1.061 1.093 1.126 1.159 1.194 1.230 1.267 1.305 1.344 1.384 1.42 1.469 1.513 1.558 1 806 2,094 2427 3262 Future Value of $1 6% 8% 1.060 1.080 1.124 1.166 1.191 1.260 1.262 1.360 1.338 1.469 1419 1.587 1.504 1.714 1.594 1.851 1 689 1 999 1.791 2.159 1.898 2.332 2012 2.518 2.133 2.720 2.261 2.937 2.397 3.172 3.207 4.661 4.292 6.848 5.743 10.063 10.286 21.725 5% 1 050 1.103 1.158 1.216 1.276 1 340 1.407 1.401 1.477 1 551 1 629 1710 1.796 1.886 1.980 2.079 2.653 3386 4322 7.040 1.480 1.539 1.601 1.665 1.732 1.801 2.191 2666 3.243 4.801 10% 1.100 1.210 1.331 1.464 1.611 1.772 1.949 2.144 2358 2.594 2.853 3.138 3.452 3.797 4.177 6.727 10.835 17.449 45.259 12% 1.120 1.254 1.405 1.574 1.762 1.974 2211 2.476 2773 3.106 3.479 3.896 4.363 4.887 5.474 9.646 17.000 29.960 93 051 14% 16% 18%20% 1.140 1.160 1.180 1.200 1.300 1 346 1 392 1440 1.482 1.561 1.643 1.07 1.728 1.689 1.811 1.939 2.074 1.925 2.100 2.288 2.488 2. 195 2436 2700 2986 2502 2.502 2.826 3.185 3.583 2.853 3.278 3.759 4.300 3252 3.803 4 435 5.160 3.707 4.411 5.234 6.192 4.226 5.117 6.176 7.430 4.818 5.93 7.288 8.916 5.492 6.886 8.599 10.699 6.261 7.988 10.147 12.839 7.138 9.266 11.974 15.407 13.743 19.461 27.393 38.338 26.462 40.874 62.669 95.396 50 950 85.850 143.371 237 376 188.884 378.721 750.378 1,469.772