Mendy Company is considering a permanent working capital decision. In return for a $50,000 outlay, the company forecasts it would receive a $15,000 annual pre-tax cash inflow. Mendy's marginal tax rate is 35% and it has a 15% cost of capital for decisions of this risk level.

Reference: Ref 12-1

The internal rate of return of this decision is:

Group of answer choices

10.5%.

30%.

19.5%.

15%