From the previous question, what was the IRR on their investment in the business?

A. 11.37.

B. 12.47.

C. 15.27.

D. 16.57.

Previous question

Perry and Susan Williams just retired, moved to the lake and purchased fishing equipment and a bass boat for Perry’s new fishing business. The total investment in this business is \($25,200—the\) cost of the equipment and boat.
Susan told Perry he needed to earn at least a 10 percent return per year, because their retirement investment portfolio had averaged this amount over the years. 

Surprisingly, and as a result of their investment in the equipment, they have actually been able to sell some of their catch to local restaurants at the marina. They have had positive cash flow, in excess of expenses, of \($5,000;
$5,500;\) \($10,000;\) and \($15,000\) over a four-year period, respectively. At the end of their fourth year at the lake, they finally decide to really retire. The Williams sell all of their equipment to some local college students for \($3,000.\) What is the NPV of the business?