DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 10%. What is the modified internal rate of return of this project?

a) 10.87%

b) 12.56%

c) 14.35%

d) 11.57%