Please explain, thanks!

Use the following information to answer the next two question: Kramer Company paid $60,000 to purchase a depreciable asset. The asset is expected to produce annual cash inflows of $12,000 per year for ten years. Kramer's desired rate of return is 12%. Which of the following is the present value of the cash inflows expected for this asset? Round to the nearest whole dollar. The internal rate of return for this investment is