Assume that a company is considering buying a new piece of equipment for $$240,000$ that would have a useful life of five years and no salvage value. The equipment would generate the following estimated annual revenues and expenses:

Revenues $ $130,000$

Less operating expenses:

Commissions $ $15,000$

Insurance $5,000$

Depreciation $48,000$

Maintenance $30,00098,000$

Net operating income $ $32,000$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using the tables provided.

The internal rate of return for this investment is closest to:

Multiple Choice

$22\%.$

$18\%.$

$24\%.$

$20\%.$

Could someone show the actual calculations used to reach the IRR?