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A firm is considering a project requiring an investment of $900,000. The project would generate...

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Accounting

  1. A firm is considering a project requiring an investment of $900,000. The project would generate annual cash flows of $244,250 for the next six years. The company uses the straight-line method of depreciation. A partial table of the present value of an annuity of $1 in arrears is as follows:
    Year 3% 5% 7% 9% 10% 12% 14% 16%
    6 5.41719 5.07569 4.76654 4.48592 4.35526 4.11141 3.88867 3.68474
    Which of the following is the approximate internal rate of return for the project? (Note: Round the discount factor to five decimal places.)

    a. 12%.

    b. 14%

    c. 16%

    d. 10%

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