5-85. Consider an investment project with net cash flows as follows.

EOY Cash Flow 0 –$120,000 1 20,000 2 30,000 3 25,000 4 35,000 5 35,000 The project’s internal rate of return is closest to (5.6):

(a) 12%

(b) 6%

(c) 9%

(d) 21%