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		$ 114,900
Less operating expenses:
Commissions	$ 15,000
Insurance	5,000
Depreciation	48,000
Maintenance	30,000	98,000
Net operating income		$ 16,900

Click here to viewExhibit 14B-1andExhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. The internal rate of return for this investment is closest to:

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Multiple Choice

• 13%.
• 9%.
• 15%.
• 11%.