Lobel Machines Company is evaluating an investment of

$1,300,000

which will yield net cash inflows of

$217,719

per year for

88

years with no residual value. What is the internal rate of return?

Present value of ordinary annuity of $1:

	5%	6%	7%	8%
1	0.952	0.943	0.935	0.926
2	1.859	1.833	1.808	1.783
3	2.723	2.673	2.624	2.577
4	3.546	3.465	3.387	3.312
5	4.329	4.212	4.100	3.993
6	5.076	4.917	4.767	4.623
7	5.786	5.582	5.389	5.206
8	6.463	6.21	5.971	5.747
9	7.108	6.802	6.515	6.247
10	7.722	7.36	7.024	6.71

A.

88%

B.

77%

C.

99%

D.

66%