Tanya Sinclair, owner of Cato Fine Wine, is considering investing $250,043 in a temperature-controlled wine storage room. She plans to rent space to customers and expects to generate $64,300 annually (rental charges less miscellaneous expenses other than depreciation).

Assuming Tanya wishes to evaluate the project with a 6-year time horizon, what is the internal rate of return of the investment? (Ignore taxes.)(Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 17%.)

Internal rate of return

%

Should Tanya make the investment if her required rate of return is 11 percent?

Tanyashould/ should not make the investment.