Use the Following Table $\text { Present Value of an Annuity of } 1$

Multiple Choice

Use the following table $\text { Present Value of an Annuity of } 1$$\begin{array}{rrrr}\text { Period } & 8 \% & 9 \% & 10 \%\\1 & .926 & .917 & .909 \\2 & 1.783 & 1.759 & 1.736 \\3 & 2.577 & 2.531 & 2.487\end{array}$ A company has a minimum required rate of return of 8%. It is considering investing in a project that costs $231930 and is expected to generate cash inflows of $90000 each year for three years. The approximate internal rate of return on this project is

A) 8%.
B) 9%.
C) 10%.
D) The IRR on this project cannot be approximated.