Krauth Company purchased a machine for $162,600. The machine has a life of twelve years with no salvage value. It is expected that the machine will generate annual net cash inflows of $30,000 per year over its useful life. Assume Krauth Company employs a cost of capital of 10% on all capital investment projects.

The internal rate of return (IRR) on the machine is closest to:

Group of answer choices

9%

10%

12%

14%

15%

16%