The internal rate of return method is used by Royston Construction Co$.$ in analyzing a capital expenditure proposal that involves an investment of $$62,400$ and annual net cash flows of $$15,000$ for each of the $7$ years of its useful life.

The internal rate of return method is used by Royston Construction Co$.$ in analyzing a capital expenditure proposal that involves an investment of $$62,400$ and annual net cash flows of $$15,000$ for each

of the $7$ years of its useful life.

Present Value of an Annuity of $$1$ at Compound Interest

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.

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.