Patel, Inc. is planning to invest $240,000 in a ten-year project. Patel estimates that the annual cash inflow, net of income taxes, from this project will be $38,000. Patel's required rate of return on investments of this type 10%. Information on present value factors is as follows: At 10%, Present value of $1 for ten periods = 0.386; Present value of an annuity of $1 for ten periods = 6.145. At 12%, Present value of $1 for ten periods = 0.322; Present value of an annuity of $1 for ten periods = 5.650. Patel's internal rate of return on this investment is

A. Less than 10%, but more than 0%.

B. 10%.

C. Less than 12%, but more than 10%.

D. 12%.

E. Greater than 12%.