Approximate Internal Rate Of Return Problem 543703

Use the following table,

Present Value of an Annuity of 1

Period8%9%10%
1.926.917.909
21.7831.7591.736
32.5772.5312.487

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%.