Chapter 25 Homework Nat Present Vatu Hethod and Internal Rate of Returns Method for a service company Buckeye Healthcare Corp. is smposing to spend $57,600 on a five year project that has estimated net cash flows of $16,000 for each of the five years. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 3.833 2 1.833 1.736 1.690 1426 1.528 ' 2.673 2.487 2.402 2.263 2.106 4 3.465 3.170 3.037 2855 2.509 5 4.212 3.791 3.605 3.352 2.901 " 4.917 4.355 4111 3.784 3.326 7 5.582 4. 4.564 4.100 3.605 B 6.210 5.335 4.968 4.487 3.837 6.802 5.759 5.328 4.772 10 7.360 6.345 5.650 5.019 4.031 4.192 Compute the net present value, using a rate of retum of 15%. Use the table of presentou of nauty of 11 presented above. If required, round to the nearest dollar Use the minus sign to indicate a negative net present valus Present value of annual net cash flows Less amount to be invested Net present value b. Based on the analysis prepared in part (a), is the rate of return (1) more than 15%, (2) 15%, or (3) less than 15% Less than 15% Determine the internal rape of return by computing a present value factor for an annuity of $3 and using the table of the present value of an annuity of $1 presented above