I'm struggling with the area "indicate how the internal rate of return is calculated using the factor arrived at above." It needs to be answered with an equation/ formula that results in a percentage. I'm asking for help with the equation please, to show how to calculate the IRR. Thank you. uiredAssuming a six-year time horizon, what is the internal rate of return of the remodeling project? Calculatesing both present value factors and separately using Excel's IRR function.Annual cash flow:Revenue110,000.00Less costs:Other than depreciationDepreciation10,000.0058,333Income before taxes41,667Income tax expense8,333Net income33,333.33Add depreciation58,333Cash flow$91,667Present value factor:$ 350,000$ 91,6673.82 factorIndicate how the Internal rate of return is calculated using the factor arrived at above.

Equation needed Present value FACTOR =1-(1+r)-n/r i=interest rate =internal rate of return n=6…

I'm struggling with the area "indicate how the internal rate of return is calculated using the factor arrived at above." It needs to be answered with an equation/ formula that results in a percentage. I'm asking for help with the equation please, to show how to calculate the IRR. Thank you.

I'm struggling with the area "indicate how the internal rate of return is calculated using the factor arrived at above." It needs to be answered with an equation/ formula that results in a percentage. I'm asking for help with the equation please, to show how to calculate the IRR. Thank you.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 4BE: Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of...

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Internal rate of return A project is estimated to cost 463,565 and provide annual net cash flows of 115,000 for nine years. Determine the internal rate of return for this project, using the present value of an annuity table appearing in Exhibit 5 of this chapter.
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