Problem:
Masters Musical Instruments is evaluating a project that is expected to provide annual cash flows of $12,600 for 10 years and requires an investment today of $65,300.
Required:
Question: At what rate would Barker be indifferent between accepting the project and rejecting it?
A. 9.94 percent
B. 11.68 percent
C. 14.17 percent
D. 16.75 percent
E. 19.13 percent
Note: Please show how you came up with the solution.