Benny's is considering adding a new product to its lineup and have estimated the following: Benny's required return on projects like the proposed is 16%. Benny's average book value is $31,000. What is the internal rate of return (IRR) of the project?

Question 4 options:

1)

16.11%

2)

16.00%

3)

-1.21%

4)

-12.11%

5)	Cannot be determined given the directions of the cash flows