Use the following table,
Present Value of an Annuity of 1
Period 8% 9% 10%
1 .926 .917 .909
2 1.783 1.759 1.736
3 2.577 2.531 2.487
A company has a minimum required rate of return of 8% and is considering investing in a project that costs $136,674 and is expected to generate cash inflows of $54,000 each year for three years. The approximate internal rate of return on this project is:
A) 8%.
B) 9%.
C) 10%.
D) less than the required 8%.