Pique Corporation wants to purchase a new machine for $300,000. Management predicts that the machine can produce sales of $200,000 each year for the next 5 years. Expenses are expected to include direct materials, direct labor, and factory overhead (excluding depreciation) totaling $80,000 per year. The firm uses straight-line depreciation with no residual value for all depreciable assets. Pique's combined income tax rate is 40%. Management requires a minimum after-tax rate of return of 10% on all investments. 12 What is the approximate internal rate of return (IRR) of the investment? (NOTE: To answer this question, students must have access to Table 2 from Appendix C,Chapter 12.) Assume that annual after-tax cash flows occur at year-end Multiple Choice 12 Less than 12%. Somewhere between 12% and 14%. Somewhere between 20% and 25% Somewhere between 15% and 20% Over 25%