Sunflower Inc. is planning to invest $600,000 in a 5-year project. The project is expected to produce annual net cash inflows, net of income taxes, of $150,000. The company's desired rate of return for investment projects of this type is 10%.

Information on present value factors is as follows:

4% 6% 8% 10%

Present value of $1 for 5 periods 0.822 0.747 0.681 0.621

Present value of an annuity of $1

for 5 periods 4.452 4.212 3.993 3.791

The internal rate of return (IRR) of this investment project is

Group of answer choices

between 6% and 8%.

less than 6% and more than 10%

less than 4% and more than 10%.

Between 8% and 10%.

Between 4% and 6%.