The Valentine Company has decided to buy a machine costing $41,499. Estimated cash savings from using the new machine amount to $9,000 per year. The machine will have no salvage value at the end of its useful life of fourteen years. (Ignore income taxes.)

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

If Valentine's required rate of return is 13%, the machine's internal rate of return is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.)

	18%
	16%
	14%
	20%