Courtmaster Provides Superturf for Tennis Courts

Courtmaster provides Superturf for tennis courts. The company has recently investigated investing in a new machine, which will speed up the laying of the Superturf. The old machine has a remaining life of 5 years, and the new equipment has a value of $150,000 with a five-year life. The expected additional cash inflows are $35,000 per year. In what range is the internal rate of return for the new machine?

A) 2-4%
B) 4-6%
C) 8-10%
D) 6-8%