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

Investment required in equipment	$640,000
Annual cash inflows	$86,000
Salvage value	$0
Life of the investment	20 years
Discount rate	9%

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.)

12%

10%

14%

8%

EXHIBIT 13B-2 Present Value of an Annuity of $1 in Arrears 1 rn Periods 4% 59% 69% 7% 89% 9% 10% 11% 12% 13% 14% 159% 16% 17% 18% 19% 20% 219% 22% 23% 24% 25% 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 1.886 1.85 1.833 1.808 1.783 1.759 1.736 1.713 1.690 1.668 1.647 1.626 1.605 1.585 1.566 1 547 1.528 1.509 1.492 1.474 1.457 1.440 2.775 2.723 2.673 2.624 2.577 2.531 2.487 2,444 2.402 2.361 2.322 2.283 2.246 2.2 10 2. 174 2.1 40 2. 106 2.074 2 042 2.011 1.981 1.952 3.630 3.546 3.465 3.387 3.312 3.240 3.170 3.102 3.037 2.974 2.914 2.855 2.798 2.743 2.690 2.6 39 2.5 89 2.540 2 49 2.448 2 404 2.362 4.452 4.329 4.212 4.100 3.993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3. 127 3.058 2.991 2.926 2 864 2.803 2.745 2.689 5.242 5.076 4.917 4.767 4.623 4.486 4.355 4.231 4.111 3.998 3.889 3.784 3.685 3.589 3.49 3 410 3.326 3.245 3.167 3.092 3.020 2.951 6.002 5.786 5.582 5.389 5.206 5.033 4.868 4,712 4.564 4.423 4.288 4.160 4.0 39 3.9 22 3. 81 3 706 3.605 3.508 3.416 3.327 3,242 3.161 6.733 6.463 6.210 5.971 5.747 5.535 5.335 5.146 68 4.799 4.639 4.487 4.344 4.207 4.078 3.954 3.8 37 3 726 3.619 3.518 3.421 3.329 7.108 6.802 6.515 6.247 5.995 5.759 5.537 5.328 5.132 4.946 4.772 4.607 4.45 4 303 4.163 4.031 3.905 3.786 3.673 3.566 3.463 435 10 8.111 7.722 7.360 7.024 6.710 6.418 6.145 5.889 5.650 5.426 5.216 5.019 4,8 33 4.659 4.494 4, 39 4. 192 4.054 3 92 3 799 3.682 3.571 11 8.760 8.306 7.887 7.499 7,139 6.805 6.495 6,207 5.938 5.687 5.453 5.234 5.029 4.8 36 4.656 4,4 86 4,3 27 4. 177 4,035 3.902 3 76 3.656 12 385 8.863 8.384 7.943 7.536 7.161 6.814 5.918 5.660 5.421 5, 197 6.492 6.194 4.988 4.793 4.611 4.439 4.278 4. 127 3.985 3.85 3.725 9.986 9 8.853 8.358 7.904 7.487 7. 103 6.750 6.424 6.122 5.842 5.583 5. 342 5. 18 4.910 4.7 15 4.53 4. 362 4, 20 4.05 3 912 3 780 13 14 10.563 9.899 9,295 8.745 8.244 7.786 7.367 6.982 6.628 6.302 6.002 5.724 5.468 5.229 5 008 4, 802 4.61 4.432 4,265 4.108 3.962 3.824 15 11.118 10.380 9.712 9.108 8.559 8.061 7.606 7.191 6.811 6.462 6.142 5.847 5.575 5.324 5.092 4.876 4.675 4.489 4.315 4.153 4.001 3.859 16 11.652 10.838 10.106 9.447 8.851 8.313 7.824 7.379 6.974 6.604 6.265 5.954 5.668 5.405 5.1 62 4.9 38 4 730 4.536 4.357 4.189 4.033 3.887 8.544 8.022 7.549 7.120 6.729 6.373 6.047 5.749 5. 475 5.222 4.990 4.775 4.576 4. 391 4.219 4.059 3.9 10 17 12.166 11.274 10.477 9.763 9.122 18 12.659 11.690 10.828 10.059 9.372 8.756 8.201 7,702 7.250 6.840 6.467 6.128 5.818 5.534 5, 27 5 033 4.812 4.608 19 4.243 4.080 3.928 19 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7.839 7.366 6.938 6.550 6.198 5.877 5.584 5. 31 (6 5.0 70 4.84 4 635 4.442 4.263 4.097 3.942 13.590 12.462 11.470 10.594 9.818 9.129 8.514 963 7.469 7.025 6.623 6.259 5.929 5.628 5.353 5. 101 4. 870 4. 657 4. 460 4.279 4.1 10 3.954 20 14.029 12.821 11.764 10.836 10.017 8.075 9.292 8.649 7.562 7.102 6.687 6.312 5.973 5.665 5.3 5.127 4.891 4.675 4. 476 4.292 4. 121 3.963 21 14.451 13.163 12.042 11.061 10.201 9.442 8.772 8.176 7.645 7.170 6.743 6.359 6.011 5.696 5 410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 23 14.857 13.489 12.303 11.272 10.371 9.580 8.883 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4.925 4.703 4, 499 4.31 4 137 3,976 24 15.247 13.799 12.550 11.469 10.529 9.707 8.985 8.348 7.784 7.283 6.835 6.434 6.073 5.746 5.451 5.182 4.937 4.713 4.507 4.318 4.143 3.981 25 15.622 14.094 12.783 11.654 10.675 9.823 9.077 8422 7.843 7.330 6.873 6.464 6.097 5.766 5.467 5.195 4.948 4.721 4.514 4.323 4.147 3.985 26 15.983 14.375 13.003 11.826 10.810 9,929 9.161 8.488 7.896 7.372 6.906 6.491 6 118 5.783 5.480 5.20 4,956 4.728 4.520 4.328 4.151 3.988 27 16.330 14.64 3.211 11.987 10.935 10.027 9.237 8.548 7.943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4.964 4.734 4.524 4.332 4.154 3.990 16.663 14.898 13.406 12.137 11.051 10.116 9.307 8.602 7.984 7.441 6.961 534 6.152 5.810 5.502 5.223 4.970 739 4.528 4.335 4.157 3.992 29 16.984 15.141 13.591 12.278 11.158 10.198 9.370 8.650 8.022 7.470 6.983 6.551 6.166 5.820 5.510 5. 29 4.975 4. 743 4 31 4. 337 4. 159 3.994 30 17.292 15.372 13,765 12.409 11.258 10.274 9.427 8.694 8.055 7.496 7.003 6.566 6. 177 5. 829 5.517 5.2 35 4.979 4. 746 4.5 34 4, 339 4, 160 3.995 40 19.793 17.159 15.046 13.332 11.925 10.757 9.7 79 8,951 8.244 7.634 7.105 6.642 6.233 5.871 5.548 5.258 4.997 4 760 4.544 4.347 4.166 3.999