Stoves Company is considering an investment in a machine that would reduce annual labor costs by $30,000. The machine has an expected life of 10 years with no salvage value. The machine would be depreciated using the straight-line method over its useful life. Assume that Stoves Company pays $250,000 for the machine. What is the expected internal rate of return on the machine? Present value tables or a financial calculator are required.

Group of answer choices

between 17 and 18 percent

between 3 and 4 percent

less than 1 percent

between 8 and 9 percent