Gammaro Games is considering an equipment investment that will cost $970,000. Projected net cash inflows over the equipment's three-year life are as follows: Year 1: $484,000; Year 2: $384,000; and Year 3: $296,000. Gammaro Games wants to know the equipment's IRR.

View the present value of $1 table.

View the future value of $1 table.

Requirement

View the present value of annuity of $1 table.

View the future value of annuity of $1 table.

Use trial and error to find the IRR within a 2% range. (Hint: Use Gammaro Games' hurdle rate of 8% 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: 8%, 10%, and 12%. (Round your answers to the nearest whole dollar. Use parentheses or a minus sign for negative net present values.)

The NPV at 8% is