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Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):...

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Accounting

Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.):

Investment required in equipment $ 39,500
Annual cash inflows $ 9,800
Salvage value of equipment $ 0
Life of the investment 15 years
Required rate of return 10 %

The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment.

Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using the tables provided.

The internal rate of return of the investment is closest to:

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