The internal rate of return method is used by Rustic Renovations Inc in analyzing a capital expenditure proposal that involves an investment of $74,520 and annual net cash flows of $15,000 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 of return b Using the factor determined in (a) and the present value of an annuity of $1 table appearing in this chapter, determine the internal rate of return for the proposal

Question: The internal rate of return method is used by Rustic Renovations Inc. in analyzing a capital expenditure proposal that involves an investment of $74,520 and

The method is used by Rustic Renovations Inc. in analyzing a capital expenditure proposal that involves an investment of $74,520 and annual net cash flows of $15,000 for each of the 8 years of its useful life.
a. Determine a present value factor for an of $1 which can be used in determining the Using the factor determined in (a) and the present value of an of $1 table appearing in this chapter, determine the for the proposal.

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