Assume the following information for a capital budgeting proposal with a five$-$year time horizon:

Initial investment:

Cost of equipment $($zero salvage value$)$ $$460,000$

Annual revenues and costs:

Sales revenues

Variable expenses

Depreciation expense

$$300,000$

$$130,000$

Fixed out$-$of$-$pocket costs

$$50,000$

$$40,000$

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

This proposal's internal rate of return is closest to:

Multiple Choice

$12\%.$

$17\%.$