Present Value of an Annuity of $1 in Arrears

Present value of an Annuity of $1 in Arrears

-Lucas Company is considering a project with an initial investment of $530,250 in new equipment that will yield annual net cash flows of $95,000, and will be depreciated at $75,750 per year over its seven year life.What is the internal rate of return?

A) 8%
B) 6%
C) 12%
D) 10%
E) 14%