a.Determine a present value factor for anannuityof $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 thepresent value of an annuityof $1 table above, determine the internal rate of return for the proposal.

A Internal Rate of Return Method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital expenditure proposal that involves an investment of $}"1,6EI4 and annual net cash ows of $1100!) for each of the ve years of its useful life. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.8?0 0.833 2 1.833 1.736 1 .690 l .626 1.528 3 2.673 2.48? 2.402 2.283 2.106 4 3.465 3.1?0 3.037 2.855 2.589 5 4.212 3.?91 3.605 3.353 2.991 6 4.91? 4.355 4.111 3.?85 3.326 ) 3" 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.48? 3.837 9 6.802 5.?59 5.328 4.??2 4.031 10 7".360 6.145 5.650 5.019 4.192 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. :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