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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 $ and annual net cash flows of $ for each of the five years of its useful life.
Present Value of an Annuity of $ at Compound Interest
Year
a Determine a present value factor for an annuity of $ which can be used in determining the internal rate of return. If required, round your answer to three decimal places.
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b Using the factor determined in part a and the present value of an annuity of $ table above, determine the internal rate of return for the proposal.
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