Beauty Brushes is considering an equipment investment that will cost $940,000. Projected net cash inflows over the equip

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Beauty Brushes Is Considering An Equipment Investment That Will Cost 940 000 Projected Net Cash Inflows Over The Equip 1 (156.85 KiB) Viewed 15 times

Beauty Brushes 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: $500,000; Year 2: $382,000; and Year 3: $298,000. Beauty 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 Beauty's hurdle rate of 10% to begin the trial-and-error process.) Use a business calculator or spreadsheet to compute the exact IRR. - X Reference h (...) Begin by calculating the NPV at three rates: 10%, 12%, and 14%. (Round your answers to the nearest whole dollar. Use parenthes 5% 12% 14% The NPV at 10% is Present Value of Annuity of $1 Periods 1% 2% 3% 4% 6% 8% 10% 16% 18% 20% Period 1 0.990 0.980 0.971 0.962 0.952 0.943 0.926 0.909 0.893 0.877 0.862 0.847 0.833 Period 2 1.970 1.942 1.913 1.886 1.859 1.833 1.783 1.736 1.690 1.647 1.605 1.566 1.528 Period 3 2.941 2.884 2.829 2.775 2.723 2.673 2.577 2.487 2.402 2.322 2.246 2.174 2.106 Period 4 3.902 3.808 3.717 3.630 3.546 3.465 3.312 3.170 3.037 2.914 2.798 2.690 2.589 Period 5 4.853 4.713 4.580 4.452 4.329 4.212 3.993 3,791 3.605 3.433 3.274 3.127 2.991 Period 6 Period 7 Period 8 Period 9 5.795 6.728 7.652 8.566 9.471 Period 10 5.601 5.417 5.242 5.076 4.917 4.623 4.355 4.111 3.889 3.685 3.498 3.326 6.472 6.230 6.002 5.786 5.582 5.206 4,868 4.564 4.288 4.039 3.812 3.605 7.325 7.020 6.733 6.463 6.210 5.747 5.335 4.968 4.639 4 344 4.078 3.837 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 4.494 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 4.439 Period 13 12.134 11.348 10.635 9.986 9.394 8.853 7.904 7.103 6.424 5.842 5.342 4.910 4.533 Period 14 13.004 12.106 11.296 10.563 9.899 9.295 8.244 7.367 6.628 6.002 5.468 5.008 4.611 Period 15 13.865 12.849 11.938 11.118 10,380 9.712 8.559 7.606 6.811 6.142 5.575 5.092 4.675 Period 20 18.046 16.351 14.877 13.590 12.462 11.470 9.818 8.514 7.469 6.623 5.929 5.353 4.870 Period 25 22.023 19.523 17.413 15.622 14.094 12.783 10.675 9.077 7.843 6.873 6.097 5.467 4.948 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 4.979 Period 40 32.835 27.355 23.115 19.793 17.159 15.046 11.925 9.779 8 244 7 105 6 233 5548 4.997