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Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.) Investment required in equipment $490,000 Annual cash inflows $90,000 Salvage

Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Investment required in equipment $490,000
Annual cash inflows $90,000
Salvage value $0
Life of the investment 10 years
Discount rate 7%

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.)

13%

11%

9%

15%

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