Assume that a company purchased a new machine for $$20,000$ that has a salvage value of $$2,000$ at the end of its useful life of five years. The machine is expected to save the company $$6,000$ a year in cash operating costs for five years. The machine$$s internal rate of return is closest to:

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate discount factor$($s$)$ using the tables provided.

Multiple Choice

$17\%.$

$19\%.$

$15\%.$

$20\%.$