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%

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
	Less costs:
	Other than depreciation
	Depreciation
	Income before taxes
	Income tax expense
	Net income
	Add depreciation
	Cash flow

Present value factor:
				=		factor
Indicate how the Internal rate of return is calculated using the factor arrived at above.