1. The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $174,160 and annual net cash flows of $40,000 for each of the six years of its useful life.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

A B C D 1 Internal rate of return method 2 The internal rate of return method is used by Testerman Construction Co. in analyzing 3 a capital expenditure proposal. The following data is provided: 4 DATA Period Cash flow -$174, 160 $40,000 $40,000 10 OUAUN-C $40,000 11 $40,000 12 $40,000 13 $40,000 14 Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B18) into the appropriate fields in CNOWv2 for grading. 16 17 Amount Formula 18 Internal rate of return