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answer both for a thumbs up please Internal Rate of Return Method The Internal rate of retum method is used by Testerman Construction Co. in

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Internal Rate of Return Method The Internal rate of retum method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $92,175 and annual net cash flows of $15,000 for each of the 10 years of its useful life. Present Value of an Annultu of 41 at Commound rokmonet a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of retum. If required, round your answer to three decimal places. b. Usina the factor determined in part (a) and the present value of an arnuity of $1 table above, determine the internal rate of return for the proposai. % Average Rate of Retum-Cost Savings Maul Fabricators Inc. is considering an investment in equipment that will replace direct labor. The equipment has a cost of $110,000 with a $9,000 residual value and a ten-year life. The equipment will replace one employee who has an average wage of $26,160 per year. In addition, the equipment will have operating and energy costs of $5,350 per year. Determine the average rate of retum on the equipment, giving effect to straight-line depreciation on the investment. If required, round to the nearest whole percent, Fredtsci F Check My Wock equals average annual income

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