Cirice Corp. is considering opening a branch in another state. The operating cash flow will be $153,400 a year. The project will require new equipment costing $553,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. The equipment will have a market value of $151,000 at the end of the project. The project requires an initial investment of $34,500 in net working capital, which will be recovered at the end of the project. The tax rate is 35 percent. What is the project's IRR?

Multiple Choice

• 16.27%

• 15.71%

• 11.00%

• 13.34%

• 14.52%