The internal rate of return method is used by King Bros Construction Co in analyzing a capital expenditure proposal that involves an investment of $156,218 and annual net cash flows of $38,000 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 determining the internal rate of return Round to three decimal places b Using the factor determined in part (a) and the present value of an annuity of $1 table appearing in this chapter (Exhibit 5), determine the internal rate of return for the proposal

Question: The internal rate of return method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $156,218

The method is used by King Bros. Construction Co. in analyzing a capital expenditure proposal that involves an investment of $156,218 and annual net cash flows of $38,000 for each of the six years of its useful life.
a. Determine a present value factor for an of $1, which can be used in determining the Round to three decimal places.
b. Using the factor determined in part (a) and the present value of an of $1 table appearing in this chapter (Exhibit 5), determine the for the proposal.

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