Westmont Publishing is considering the purchase of a used printing press costing $75,200. The printing press would generate a net cash inflow of $31,310 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows:

Cost of Capital

Period	8%	10%	12%	14%	16%
2	1.78326	1.73554	1.69005	1.64666	1.60523
3	2.57710	2.48685	2.40183	2.32163	2.24589
4	3.31213	3.16987	3.03735	2.91371	2.79818

The investments internal rate of return (rounded to the nearest percent) is

	A.	14 percent.
	B.	12 percent.
	C.	10 percent.
	D.	16 percent.

Westmont Publishing is considering the purchase of a used printing press costing $69,700. The printing press would generate a net cash inflow of $31,000 a year for 3 years. At the end of 3 years, the press would have no salvage value. The company's cost of capital is 10 percent. The company uses straight-line depreciation. The present value factors of an annuity of $1.00 for different rates of return are as follows:

Cost of Capital

Period	8%	10%	12%	14%	16%
2	1.78326	1.73554	1.69005	1.64666	1.60523
3	2.57710	2.48685	2.40183	2.32163	2.24589
4	3.31213	3.16987	3.03735	2.91371	2.79818

The investment's net present value is:

	A.	$ 8,891
	B.	$23,300
	C.	$ 5,480
	D.	$ 7,392