Capa Corporation is considering the purchase of a new machine costing $150,000. The machine would generate net cash inflows of $43,690 per year for 5 years. At the end of 5 years, the machine would have no salvage value. Capa's cost of capital is 12 percent. Capa uses straight-line depreciation. The present value factors of annuity of $1.00 for different rates of return are as follows:

Period	12%	14%	16%	18%
4	3.03735	2.91371	2.79818	2.69006
5	3.60478	3.43308	3.27429	3.12717
6	4.11141	3.88867	3.68474	3.49760

The proposal's internal rate of return (rounded to the nearest percent) is:

Select one:

a. 16 percent

b. 18 percent

c. 12 percent

d. 14 percent