Paulsen Is Considering the Acquisition of a $217,750 Machine That

Paulsen is considering the acquisition of a $217,750 machine that is expected to produce annual savings in cash operating costs of $50,000 over the next six years.If Paulsen uses the internal rate of return (IRR) to evaluate new investments and the company has a hurdle rate of 12%,which of the following statements is correct?

A) The machine's IRR is less than 4%,and the machine should not be acquired.
B) The machine's IRR is approximately 10%,and the machine should not be acquired.
C) The machine's IRR is approximately 10%,and the machine should be acquired.
D) The machine's IRR is approximately 12%,and the machine should be acquireD.
E) All of the preceding statements are falsE.