The internal rate of return method is used by Royston Construction Co. in analyzing a capital expenditure proposal that involves an investment of $39,655 and annual net cash flow of $11,000 for each of the 7 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 of return. If required, round your answer to three decimal places. 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. % Cash payback period, net present value analysis, and qualitative considerations The plant manager of Orlando Electronics Company is considering the purchase of new automated assembly equipment. The new equipment will cost $240,000. The manager believes that the new investment will result in direct labor savings of $48,000 per year for 10 years. a. What is the payback period on this project? years b. What is the net present value, assuming a 12% rate of return? Use the table provided above. Round to the nearest whole dollar. Net present value $ Internal rate of return method tor a service company Vail Resorts, Inc. (MTN), announced a $554,952 million expansion of lodging properties, ski lifts, and terrain in Park City, Utah. Assume that this investment is estimated to produce $114,000 million in equal annual cash flows for each of the first 7 years of the project life. a. Determine the expected internal rate of return of this project for 7 years, using the present value of an annuity of $1 table above. % b. Identify the uncertainties that could reduce the internal rate of return of this project