A PE fund buys a company (with no existing debt or cash) for $700 million, at a purchase EBITDA multiple of 10.0x. They use 75% debt and 25% equity. At the end of the 3-year period, they sell the company at an exit EBITDA multiple of 12.0x. However, EBITDA has not changed at all. Finally, the PE fund has paid off $200 million worth of debt. What is the approximate IRR on this deal?

Group of answer choices

Approximately a 43% IRR.

Approximately a 35% IRR.

Approximately a 15% IRR

Approximately a 26% IRR.