A mining company wishes to start up a new smallgold mine. The initial cost will be $5m and it isexpected to extract $3m a year in gold with incurring only $1.5m a year in costs for 5 years.Assume revenue and costs are received and incurred at the end ofeach year, starting in one year's time.When the last revenue is received and costs paid in 5 years time, the mine also incurs a shutdown expense of $1m. The project has a positive NPV at the company's 10.25% cost of capital.Which of the following is closest to the correct IRR? Ignore taxes.