Question: The internal rate of return method is used by LeachObj. 3 Construction Co . inanalyzing a capital expenditure proposal that involves an investment of $

The internal rate of return method is used by LeachObj. 3Construction Co. inanalyzing a capital expenditure proposal that involves an investment of $400,125 and annual net cash flow of $75,000 for each of the 8 years of its useful life.a. Determine a present value factor for an annuity of $1 which can be used in determining the internal rate ofreturn.Answerb. Using the factor determined in part(a) and the present value of an annuity of $1 table appearing in Exhibit 5, determine the internal rate of return for the proposal. SHOW ALL YOUR WORK!!

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