The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $147,740 and annual net cash flows of $38,000 for each of the six years of its useful life.

This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the question below.

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Determine the internal rate of return for the proposal.

Internal rate of return method
The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal. The following data is provided:
DATA
Period	Cash flow
0	-$147,740
1	$38,000
2	$38,000
3	$38,000
4	$38,000
5	$38,000
6	$38,000
Using formulas and cell references, perform the required analysis, and input your answer into the Amount column. Transfer the numeric result for the green entry cell (B18) into the appropriate fields in CNOWv2 for grading.
	Amount	Formula
Internal rate of return