Internal Rate of Return Method for a Service Company The Riverton Company, a ski resort, recently announced a $601,326 expansion to lodging properties, lifts, and terrain. Assume that this investment...

Internal Rate of Return Method for a Service Company

The Riverton Company, a ski resort, recently announced a $601,326 expansion to lodging properties, lifts, and terrain. Assume that this investment is estimated to produce $198,000 in equal annual cash flows for each of the first four years of the project life.

a.Determine the expected internal rate of return of this project for four years, using the present value of an annuity of $1 table above. If required, round your final answer to the nearest whole percent.
fill in the blank 1 %