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		$ 138,500
Less operating expenses:
Commissions	$ 15,000
Insurance	5,000
Depreciation	48,000
Maintenance	30,000	98,000
Net operating income		$ 40,500

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