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The following data pertain to an investment proposal: Required equipment investment $124,000 Annual cash savings $52,000 Projected life of investment 4 years Projected salvage value

The following data pertain to an investment proposal:

Required equipment investment $124,000

Annual cash savings $52,000

Projected life of investment 4 years

Projected salvage value $0

Required rate of return 8%

The income tax rate is 28%. To which amount is the internal rate of return on this investment closest?

A 25%

B 2.38%

C Less than 6%

D 12.5%

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