Net Present Value Method and Internal Rate of Return Method Wisconsin Healthcare Corp. is proposing to spend $3,810,000 on a project that has estimated net cash flows of $620,000 for each of the next 10 years. Present Value of an Annuity of $1 at Compound Interest 10% 0.909 1.736 Year 6%% 0.943 1.833 15%% 0.870 1.626 12%% 0.893 1.690 2.673 2.487 2.402 2.283 2.106 3.465 3.170 3.037 2.855 2.589 3.605 20% 0.833 1.528 4.212 4.917 4.355 5.582 4.868 6.210 6.802 7.360 3.791 3.353 3.785 4.1603.605 4.487 4.7724.031 5,019 2.991 3.326 5.335 5.759 6.145 4.564 4.968 5.328 S.650 3.837 10 4.192 a. compute the net present value, using a rate of return of 12%. Use the table of present value of an annuity of Present value of annual net cash flows Amount to be invested Net present value 1 presented above. If required, use the minus sign to indicate a negative net present value. b. Based on the analysis prepared in part(a), Is the rate of retum (1) more than 12%, (2) 12%, or (3) less than 12%? more than 12% c. Determine the internal rate of return by computing a present value factor for an annuity of $1 and using the table of the present valu of an annuity of s1 presented above. In your calculation, round the net present value factor to three decimal places. 06