To find the internal rate of return (IRR), we use the factor of the IRR for a certain number of years. The factor you're given is 5.033 for a 7-year project. The IRR factor can be understood as the present value of an annuity of 1 for $n$ years at the IRR rate.

We need to find the rate $r$ that satisfies the following present value of annuity formula:

$PV = \frac{1 - (1 + r)^{-n}}{r}$

Where:

• $PV$ is the present value factor (5.033 in this case),
• $r$ is the unknown internal rate of return,
• $n$ is the number of years (7).

This equation can be solved iteratively or by using financial tables or a financial calculator. From standard IRR tables, for 7 years and a factor of approximately 5.033, the IRR corresponds closely to 12%.

Thus, the internal rate of return is approximately:

$\boxed{12\%}$

Let me know if you want more details on the process or have any questions!

Here are some related questions you might find interesting:

1. How does the IRR differ from the net present value (NPV)?
2. What assumptions are made when using the IRR method for project evaluation?
3. How does changing the length of the project (e.g., from 7 years to 10 years) affect the IRR?
4. What are the limitations of using the IRR to evaluate investment projects?
5. How would an IRR of 12% compare to a company's required rate of return for this project?

Tip: IRR is best used when comparing projects of similar duration and scale, as it can be misleading for projects of different sizes.