progress=false tagra eBook Print Item Internal Rate of Return Method for a Service Company The Riverton Company, announced a $1,056,550 million expansion of lodging properties, ski lifts, and terrain in Park City, Utah. Assume that this investment is estimated to produce $187,000 million in equal annual cash flows for each of the first 10 years of the project life Present Value of an Annuity of $1 at Compound Interest Year 12% 15% 20% 6% 10% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.487 2.402 2.283 2.106 2.673 3,465 4 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. Determine the expected internal rate of return of this project for 10 years, using the present value of an annuity of $1 table above % b. Identify the uncertainties that could reduce the internal rate of return of this project? All of these