Redondo Real Estate is considering the purchase of a tractor that would cost $69,846, would have a useful life of 6 years, and would have no salvage value. The use of the tractor would result in labor savings of $21,000 per year. The internal rate of return on the investment in the tractor is closest to (Ignore income taxes.):

The present value an annuity of $1 factors for 17%, 18%, 19% and 20% are: 3.589, 3.498, 3.410 and 3.326, respectively.

Group of answer choices

18%

19%

20%

17%