Assuming ($100),000 is invested today, for the next three years ($12),000 is returned annually, and in the

Question:

Assuming $$100$,000 is invested today, for the next three years $$12$,000 is returned annually, and in the fourth year a lump sum of $$80$,000 is provided. What is the IRR of this series of cash flows? Assuming a reinvestment rate of 15%, what is the MIRR of this cash flow?

a IRR: 4.52%/MIRR: 6.35%

b IRR: 4.52%/MIRR: 7.23%

c IRR: 5.71%/MIRR: 7.23%

d IRR: 5.71%/MIRR: 6.36%

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