Keystone Healthcare Corp. is proposing to spend $128,960 on a seven-year project that has estimated net cash flows $31,000 for each of the seven 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 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.352 2.991 6 4.917 7 8 10 4.355 4.111 3.784 3.326 5.582 4.868 4.564 4.160 3.605 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 7.360 6.145 5.650 5.019 4.192 a. Compute the net present value, using a rate of return of 20%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. Use the minus sign to indicate a negative net present value. 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 20%, (2) 20%, or (3) less than 20%? c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of a. Compute the net present value, using a rate of return of 20%. Use the table of present value of an annuity of $1 presented above. If required, round to the nearest dollar. Use the ninus sign to indicate a negative net present value. 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 20%, (2) 20%, or (3) less than 20%? c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present value of an annuity of $1 presented above. % Check My Work 2 more Check My Work uses remaining. Previous