Joetz Corporation has gathered the following data on a proposed investment project (Ignore income taxes.): Investment required in equipment$36,500? Annual cash inflows $8600? Salvage value of equipment$0 Life of the investment 15yearsRequired rate of return 10%The company uses straight-line depreciation on all equipment. Assume cash flows occur uniformly throughout a year except for the initial investment. Use Exhibit 13B-1 and Exhibit 13B-2 above to determine the appropriate discount factor(s). The internal rate
of return of the investment is closest to:
A. 26%
B. 22%
C. 20%
D. 24%
Answer: B
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