Midwest Marine, Inc. is considering purchasing equipment costing $30,000 with a 6-year useful life. The equipment will provide cost savings of $7,300 and will be depreciated straight-line over its useful life with no salvage value. Midwest Marine requires a 10% rate of return.

PV of an Annuity of 1

Period

8%

9%

10%

11%

12%

15%

6

4.623

4.486

4.355

4.231

4.111

3.784

What is the approximate internal rate of return for this investment?