1. The Balistan Rug Co. is considering investing in a loom that costs $12,000 and will create positive cash flows of $5000 per year for the next 3 years. The internal rate of return for this project is

1. between 10% and 15%. Solve via trial and error to find the IRR that sets NPV=0
2. between 15% and 20%
3. between 20% and 25%
4. between 25% and 30%