Problem 9-6 Internal Rate of Return and Taxes - See Textbook page 9-30
The Boston Culinary Institute is evaluating a classroom remodeling project. The cost of the remodel will be $350,000 and will be depreciated over six years using the straight-line method. The remodeled room will accommodate five extra students per year. Additional information relating to the project follows:
	Cost of the remodel project			$ 350,000
	Useful life of project in years			6
	Annual number of extra accommodated students		5
	Annual tuition per student			$ 22,000
	Before-tax incremental cost of a student		$ 2,000
	Company's income tax rate			20%
	Required rate of return				12%
Required
Assuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculate using both present value factors and separately using Excel's IRR function.
	Annual cash flow:
		Revenue		$ 110,000
		Less costs:
		Other than depreciation		10,000
		Depreciation		58,333
		Income before taxes			41,667
		Income tax expense		8,333
		Net income				33,333
		Add depreciation		58,333
		Cash flow				$ 91,667
	Present value factor:
		$ 350,000		$ 91,667	=	3.8182	factor
	Indicate how the Internal rate of return is calculated using the factor arrived at above.

Per the following information, can you please explain how to indicate the internal rate of return is calculated using the factor arrived above?