A firm is considering a project requiring an investment of $40,000. The project would generate an annual cash flow of $10,858 for the next six years. The company uses the straight-line method of depreciation. Which of the following is the approximate internal rate of return for the project? (Note: Round the discount factor to three decimal places.)

a.18%

b.12%

c.11%

d.16%

Please explain all steps in as much detail as possible, without using Microsoft excel