Overland Company Has Gathered the Following Data on a Proposed

Overland Company has gathered the following data on a proposed investment project: $\begin{array} { l r } \text { Investment in Depreciable Equipment } & \$ 150,000 \\\text { Annual Cash Flows } & \$ 40,000 \\\text { Life of the Equipment } & 10 \text { years } \\\text { Salvage Value } & - 0 - \\\text { Discount Rate } & 10 \%\end{array}$ The internal rate of return on this investment is closest to which of the following? (Ignore income taxes in this problem.)

A) 10%.
B) Less than 10%.
C) Between 10% and 20%.
D) Greater than 20%.