Ann got a 30-year FRM with annual payments equal to $12,000.

After 2 years of payments, Ann will refinance the balance into a 28-year FRM with annual payments equal to $10,000.

Refinancing will cost Ann $5,500.

Ann will prepay the new loan 3 years after refinancing. She will save $4,000 on her loan balance when she prepays.

Find the Net Present Value formula for Ann's refinancing decision if her annual discount rate is10%.

A. 12.77

B.45

C.9.76

D.24.79

E.-12.77

Find IRR for Ann's refinancing decision in Q15.Hint: this question is designed to be done with a financial calculator, not with a regular calculator.