Novak, Inc. is considering purchasing equipment costing $78000 with a 6-year useful life. The equipment will provide annual cost savings of $18973 and will be depreciated straight-line over its useful life with no salvage value. Novak requires a 10% rate of return.

Present Value of an Annuity of 1Period8%9%10%11%12%15%64.6234.4864.3554.2314.1113.784

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

9%

10%

11%

12%