Renoir, Inc. is considering a capital investment (equipment) costing $87,000 with a 6-year useful life, and equal annual cash flows. The equipment has a net present value, $10,421 calculated at 10%. Use the following table:

Present Value of an Annuity of 1

Years 8% 9% 10% 11% 12% 14%

6 4.623 4.486 4.355 4.231 4.111 3.889

a) Calculate the Present Value Factor for an Annuity for this investment (round to 0.000).

b) Determine the approximate Internal Rate of Return (IRR) of this investment.

PLEASE SHOW ALL THE CALCULATIONS!