Net Present Value Method and Internal Rate of Return Method for a service company Keystone Healthcare Corp. is proposing to spend $73,744 on a years five-year project that has estimated net cash flows of $22,000 for each of the five Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 0.943 0.833 1 0.909 0.893 0.870 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 4.355 4.111 3.784 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 4.968 5.335 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 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 65,802 Less amount to be invested 73,744 Net present value 7,942 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% of an 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 annuity of $1 presented above. X %