An investment that Kevin is considering offers the following cash flows.
Year 1 Initial investment of $10,000
Year 2 Inflow of $2,000
Year 3 Inflow of $1,500
Year 4 Additional investment of $5,000
Year 5 Inflow of $1,200
Year 6 Inflow of $2,200
Year 7 Inflow of 1,500
Year 8 Inflow of $1,000
Year 9 Inflow of $1,200
Year 10 Sale proceeds of $17,000
What is the internal rate of return (IRR) that this investment offers if all cash flows occur at the end of each period?
a. 10.10%
b. 10.87%
c. 9.24%
d. 9.74%.