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The internal rate of return method is used by Queen Bros. Construction Co . in analyzing a capital expenditure proposal that involves an investment of

The internal rate of return method is used by Queen Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $57,680 and annual net cash flows of $16,000 for each of the five years of its useful life.
Present Value of an Annuity of $1 at Compound Interest
Year 6%10%12%15%20%
10.9430.9090.8930.8700.833
21.8331.7361.6901.6261.528
32.6732.4872.4022.2832.106
43.4653.1703.0372.8552.589
54.2123.7913.6053.3522.991
64.9174.3554.1113.7843.326
75.5824.8684.5644.1603.605
86.2105.3354.9684.4873.837
96.8025.7595.3284.7724.031
107.3606.1455.6505.0194.192
a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return. If required, round your answer to three decimal places.
fill in the blank 1
b. Using the factor determined in part (a) and the present value of an annuity of $1 table above, determine the internal rate of return for the proposal.
fill in the blank 2
%

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