TB MC Qu. 08-71 (Ignore income taxes in this problem.) Crockin...

(Ignore income taxes in this problem.) Crockin Corporation is considering a machine that will save $14,000 a year in cash operating costs each year for the next six years. At the end of six years it would have no salvage value. If this machine costs $55,972 now, the machine's internal rate of return is closest to:

Click here to view Exhibit 8B-1 and Exhibit 8B-2 to determine the appropriate discount factor(s) using tables.

11%

12%

13%

14%