Present Value of an Annuity of

Periods 8% 9% 10%

1 .926 .917 .909

2 1.783 1.759 1.736

3 2.577 2.531 2.487

A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $87116and is expected to generate cash inflows of $35000each year for three years. The approximate internal rate of return on this project is

a. 9%.

b. 11%.

c. less than the required 8%.

d. 10%.