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Assume the following information for a capital budgeting proposal with a five-year time horizon: Initial investment: Cost of equipment (zero salvage value) $ 520,000 Annual

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

Initial investment:
Cost of equipment (zero salvage value) $

520,000

Annual revenues and costs:
Sales revenues $

300,000

Variable expenses $

130,000

Depreciation expense $

50,000

Fixed out-of-pocket costs $

40,000

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

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