A company's discount rate is based on the cost of capital and the internal rate of return. cut-off rate and the internal rate of return. cut-off rate and the risk element. cost of capital and the risk element. Coronado Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $166,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $32,982. Click here to view PV table. What is its approximate internal rate of return? (Round answer to O decimal place, e.g. 13%.) Internal rate of return % Swifty Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $124,600 and will increase annual expenses by $85,000 including depreciation. The oil well will cost $430,000 and will have a $10,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 0 decimal places, e.g. 13%.) Annual rate of return %