The Mayor of Elizabethtown, Ontario Is Considering the Purchase of a New

The mayor of Elizabethtown, Ontario is considering the purchase of a new computer system for the municipality's tax department. The system costs $75,000 and has an expected life of five years. The mayor estimates the following savings will result if the system is purchased: $\begin{array} { | c | r | r | } \hline \text { Year } && \text { Savings } \\\hline 1 & &\$ 20.000 \\\hline 2 & & 25.000 \\\hline 3 & & 30.000 \\\hline 4 & & 15.000 \\\hline 5 & & 12.000 \\\hline\end{array}$ What can be said about the internal rate of return of Elizabethtown's new computer system if the net present value at 12% is positive?

A) The internal rate of return is greater than 12%.
B) The internal rate of return is between 10% and 12%.
C) The internal rate of return is less than 10%.
D) The internal rate of return must be less than 5%.
E) The internal rate of return is between 0 and 5%