3.Westmont Publishing is considering the purchase of a used printing press costing $75,200.The printing press would generate a net cash inflow of $31,310 a year for 3 years.At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent.The company uses straight-line depreciation.The present value factors of an annuity of $1.00 for different rates of return are as follows:

Cost of Capital

Period

8%

10%

12%

14%

16%

2

1.78326

1.73554

1.69005

1.64666

1.60523

3

2.57710

2.48685

2.40183

2.32163

2.24589

4

3.31213

3.16987

3.03735

2.91371

2.79818

The investments internal rate of return (rounded to the nearest percent) is:

A)10 percent

B)16 percent

C)14 percent

D)12 percent