John Deere is an American manufacturer of agricultural, construction, and forestry machinery. The company is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $$102,400.$ The equipment will have an initial cost of $$403,600$ and have a $5-$year life. The salvage value of the equipment is estimated to be $$77,400.$ If the discount rate is $10\%,$ what is the internal rate of return? $($Future Value of $$1,$ Present Value of $$1,$ Future Value Annuity of $$1,$ Present Value Annuity of $$1.)($Use appropriate factor from the PV tables. Round your final answer to the nearest dollar amount.$)$

Multiple Choice

Between $12\%$ and $14\%$

Between $8\%$ and $10\%$

Between $10\%$ and $12\%$

Between $6\%$ and $8\%$