Tanya Sinclair, owner of Clinton Fine Wine, is considering investing $245,951 in a temperature-controlled wine storage room. She plans to rent space to customers and expects to generate $51,600 annually (rental charges less miscellaneous expenses other than depreciation). Click here to view factor tables

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 5 percent? Tanya should or should not make the investment?