Richmond Company expects to invest $72,000 in an asset with a 10-year life. The annual cash inflows from using the asset are estimated to be $12,000. The companys expected rate of return for this type of asset is 10%. The following present value information is available.

At 10% At 12%

Present Value of $1 for 10 periods .3855 .3220

Present Value of an annuity of $1 for 10 periods 6.1446 5.6502

The companys actual of this asset is:

a) 10% b) 12% c) Less than 10%, but more than 0% d) More 10%, less 12%