Kingbird, Inc. is considering purchasing equipment costing $70000 with a 6-year useful life. The equipment will provide annual cost savings of $17027 and will be depreciated straight-line over its useful life with no salvage value. Kingbird requires a 10% rate of return.

	Present Value of an Annuity of 1
Period	8%	9%	10%	11%	12%	15%
6	4.623	4.486	4.355	4.231	4.111	3.784

What is the approximate internal rate of return for this investment?

9%

10%

12%

11%

Answer rating: 100% (QA)

Internal Rate of Return is the rate at which cash outflow ... View the full answer