(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?