Carr Company is considering two capital investment proposals. Estimates regarding each project are provided below:

Project Soup

Project Nuts

Initial investment	$440,000	$525,000
Annual net income	20,000	42,000
Net annual cash flow	112,500	116,996
Estimated useful life	8 years	8 years

Salvage value

-0-

-0-

The company requires a 10% rate of return on all new investments.

What is the approximate IRR on Project Nuts?

		12%.
		15%.
		14%.
		9%.