Time Remaining $2$ hours $39$ minutes $49$ seconds

$02$:$39$:$49$

Item $11$

Time Remaining $2$ hours $39$ minutes $49$ seconds

$02$:$39$:$49$

TB MC Qu$.16-59($Static$)$ Benson Corporation is considering an$...$

Benson Corporation is considering an investment in equipment that would cost $$50,000$ and provide annual cash inflows of $$14,000.$ The company's required rate of return is $12\%$; the internal rate of return for the investment is $10\mathrm{.}5\%.$ Should the company make this investment?

Multiple Choice

The answer cannot be determined.

No$,$ since the internal rate of return is less than the company's required rate of return.

Yes, since the internal rate of return is less than the company's required rate of return.

No$,$ since the internal rate of return is more than the company's required rate of return.