A firm is considering an investment project with the following cash flows:

Year 0 = -$100,000 (initial costs)

Year 1 = $40,000

Year 2 = $90,000

Year 3 = $30,000

The company has an 10% cost of capital. What is the project's internal rate of return (IRR)?

(A)

10%

(B)

28.3%

(C)

30.1%

(D) This isn't correct answer

40.7%