You are offered a chance to buy an asset for $8,000 that is expected to produce cash flows of $750 at the end of Year 1, $1,000 at the end of Year 2, $850 at the end of Year 3, and $6,250 at the end of Year 4. What rate of return would you earn if you bought this asset?

Select the correct answer.

a. 4.01%

b. 3.01%

c. 2.51%

d. 3.51%

e. 2.01%