What Is the Interest Rate That a Plant Manager Is

Multiple Choice

What is the interest rate that a plant manager is being charged if she decides to lease the robotic welders with no salvage value at $12,000 per year for ten years, starting with an immediate payment, instead of paying a negotiated cash price for them of $74,593.20?

A) 22%
B) 20%
C) 18%
D) 13%
E) 10%