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	$ 300,000
Variable expenses	$ 130,000
Depreciation expense	$ 50,000
Fixed out-of-pocket costs	$ 40,000

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Exhibit 12B-1 (https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Brewer9e/Exhibit/Exhibit_12B_1.htm)

and

Exhibit 12B-2, https://ezto-cf-media.mheducation.com/Media/Connect_Production/bne/accounting/Brewer9e/Exhibit/Exhibit_12B_2.htm

To determine the appropriate discount factor(s) using the tables provided. This proposals internal rate of return is closest to:

Multiple Choice

a) 12%.

b) 17%.

c) 10%.

d) 15%.