Analyze if the investment in new equipment is profitable based on the information given below.

Cost of new equipment	$66,000
Yearly expected cash flows to be received	$20,000
Expected life	4 years
Minimum desired rate of return	10%
Present Value of an Annuity of $1 at 10% for 4 years	3.170

a.The internal rate of return is less than 10% and is not profitable.

b.The internal rate of return is greater than 10% and is profitable.

c.The internal rate of return is less than 10% and is profitable.

d.The internal rate of return is greater than 10% and is not profitable.