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The following information is available for a potential capital investment. Initial investment $60,000 Net annual cash flow 15,400 Net present value 3,143 Useful life 5

The following information is available for a potential capital investment.

Initial investment

$60,000

Net annual cash flow

15,400

Net present value

3,143

Useful life

5 years

The potential investment's internal rate of return is approximately:

(a)

5%.

(b)

10%.

(c)

4%.

(d)

9%.

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