Thomas Taylor is the CEO of Taylor Industries. Thomas is interested in purchasing new pollution abatement equipment because the current equipment is outdated and not efficient. The controller of the company has identified equipment that costs $129050 and will provide annual cash operating inflows of $35039 for 5 years. The equipment currently being used is 3 years old and could be sold for $2740.

Type of cash flow	Periods	Interest rate	Factor
PV ordinary annuity	5	6%	4.2124
PV ordinary annuity	5	8%	3.9927
PV ordinary annuity	5	10%	3.7908
PV ordinary annuity	5	12%	3.6048
PV ordinary annuity	5	15%	3.3522

What is the equipments internal rate of return?

8%

15%

10%

12%