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%