Net Present Value Method and Internal Rate of Return Method Wisconsin Healthcare Corp. is proposing to spend $140,532 on a project that has estimated net cash flows of $28,000 for each of the next 10 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 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 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 values of an annuity of $1 presented above. If required, use the minus sign to indicate a negative net present value. Present value of annual net cash flows Amount to be invested Net present value 117,376 X -140,532 23,156 X 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%? 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. In your calculation, round the net present value factor to three decimal places. 15 %