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(Ignore income taxes in this problem.) A company is considering the purchase of a tractor-trailer that...

(Ignore income taxes in this problem.) A company is considering the purchase of a tractor-trailer that would cost $178,848, would have a useful life of 8 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $36,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to:

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

rev: 01_14_2016_QC_CS-37603

A. 10%

B. 15%

C. 13%

D. 12%

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