WITHOUT EXCEL: The management of P. Hewson Corp. is considering the purchase of a machine that would cost $249,240 and would have a useful life of 20 years. The machine would have no salvage value. The machine would reduce labor and other operating costs by $20,000 per year. The internal rate of return on the investment in the new machine is closest to (ignoring taxes):

A)

7%

B)

8%

C)

9%

D)

5%

E)

6%