The following data pertain to an investment proposal:

Required equipment investment $120,200

Annual cost savings $31,700

Projected life of investment 5 years

Projected salvage value $0

Required rate of return 9%

The income tax rate is 30%. To which amount is the internal rate of return on this investment closest?

A. 3.8%

B. 10.0%

C. 9.0%

D. 38.1%