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 $ $112,400$

Less operating expenses:

Commissions $ $15,000$

Insurance $5,000$

Depreciation $48,000$

Maintenance $30,00098,000$

Net operating income $ $14,400$

Click here to view and $,$ to determine the appropriate discount factor$($s$)$

using the tables provided.

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