A 3-year project will cost $375 at the end of year 1 and is expected to produce operating profit before depreciation and amortization (EBITDA) of $110 in year 1, $108 in year 2, and $150 in year 3.Depreciation, both real and financial, will be calculated using straight-line depreciation over 3 years.The cost of capital is 8%, and the firms marginal tax rate is 25%. Calculate the project IRR if 100% equity financing is used.

which one is correct?

-1.3%

-1.7%

-1.9%

-2.0%