the internal rate of return methods is used by merit construction co in analysing a capital expenditure proposal that involves an investment of 82,220 and annual net cash flows of 20,000 for each of the six years of its useful life.

a. determine a present value factor for an annuity of $1, which can be used in determinating the internal rate of return.

b. using the factor determined in part a and the present value of annuity of $1 table, determine the internal rate of return for the proposal.