Clemens Company Is Considering the Purchase of a New Machine

Clemens Company is considering the purchase of a new machine for $160,000.The machine would generate an annual cash flow before depreciation and taxes of $62,588 for four years.At the end of four years, the machine would have no salvage value.The company's cost of capital is 12 percent.The company uses straight-line depreciation with no mid-year convention and has a 40 percent tax rate. What is the internal rate of return for the machine rounded to the nearest percent?

A) below 12%
B) between 12 and 14%
C) between 14 and 16%
D) between 16 and 18%