Byron Corp Is Considering the Purchase of a New Piece

Byron Corp is considering the purchase of a new piece of equipment.The cost savings from the equipment would result in an annual increase in cash flow of $100,000.The equipment will have an initial cost of $400,000 and have a 5 year life.The salvage value of the equipment is estimated to be $75,000.If the hurdle rate is 10%,what is the internal rate of return?

A) between 6% and 8%
B) between 8% and 10%
C) between 10% and 12%
D) between 12% and 14%