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Gregory Cable Company Is Considering Investing $450,000 in Telecommunications Equipment

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Gregory Cable Company is considering investing $450,000 in telecommunications equipment that has an estimated life of five years with no residual value.The cash flows are as shown below:
 Year 1 $120,0002235,0003140,0004$98,000\begin{array} { | r | r | } \hline \text { Year 1 } & \$ 120,000 \\\hline 2 & 235,000 \\\hline 3 & 140,000 \\\hline 4 & \$ 98,000 \\\hline\end{array} Present value of an ordinary annuity of $1:
12%13%14%15%10.8930.8850.8770.8721.691.6681.6471.62632.4022.3612.3222.28343.0372.9742.9142.85553.6053.5173.4333.352\begin{array} { | c | c | c | c | c | } \hline & 12 \% & 13 \% & 14 \% & 15 \% \\\hline 1 & 0.893 & 0.885 & 0.877 & 0.87 \\\hline 2 & 1.69 & 1.668 & 1.647 & 1.626 \\\hline 3 & 2.402 & 2.361 & 2.322 & 2.283 \\\hline 4 & 3.037 & 2.974 & 2.914 & 2.855 \\\hline 5 & 3.605 & 3.517 & 3.433 & 3.352 \\\hline\end{array} Present value of $1:
12%13%14%15%10.8930.8850.8770.8720.7970.7830.7690.75630.7120.6930.6750.65840.6360.6130.5920.57250.5670.5430.5190.497\begin{array} { | c | c | c | c | c | } \hline & 12 \% & 13 \% & 14 \% & 15 \% \\\hline 1 & 0.893 & 0.885 & 0.877 & 0.87 \\\hline 2 & 0.797 & 0.783 & 0.769 & 0.756 \\\hline 3 & 0.712 & 0.693 & 0.675 & 0.658 \\\hline 4 & 0.636 & 0.613 & 0.592 & 0.572 \\\hline 5 & 0.567 & 0.543 & 0.519 & 0.497 \\\hline\end{array}  Calculate the IRR of the project. Show your computations. \text { Calculate the IRR of the project. Show your computations. }


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