Internal rate of return method

The internal rate of return method is used by Royston Construction Co$.$ in analyzing

a capital expenditure proposal that involves an investment of $$58,968$ and annual

net cash flows of $$14,000$ for each of the $5$ years of its useful life.

Present Value of an Annuity of $$1$ at

Compound Interest

a$.$ Determine a present value factor for an annuity of $$1,$ which can be used in

determining the internal rate of return. If required, round your answer to three

decimal places.

b$.$ Using the factor determined in part $($a$)$ and the present value of an annuity of $$1$

table above, determine the internal rate of return for the proposal.

$\%$