Tennessee Corporation is analyzing a capital expenditure that will involve a cash outlay of $57,075. Estimated cash flows are expected to be $25,000 annually for four years.

The present value factors for an annuity of $1 for 3 years is as follows:

interest of 10% 2.487

12% 2.402

15% 2.283

20% 2.106

The internal rate of return for this investment is:

		10%
		12%
		15%
		20%

The expected average rate of return for a proposed investment of $800,000 in a fixed asset, with a useful life of four years, straight-line depreciation, no residual value, and an expected total net income of $220,000 for the 4 years, is:

		27.5%
		6.875%
		55%
		13.75%