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# (Ignore income taxes in this problem.) Given the following data: Cost of equipment. $55,750 Annual cash inflows. $10,000 Internal rate of return.

Internal rate of return.........

16%

The life of the equipment must be:

A) it is impossible to determine from the data given

**B) 15 years**

C) 12.5 years

D) 5.75 years

Why is it B?