Calculate the pre-tax IRR for a private equity investment in year three given the following information (rounded to the nearest whole number).

Details ($ in millions):

• Dividends: Yr. 0 = 0, Yr. 1 = $0, Yr. 2 = $10, Yr. 3 = $0
• Equity Investment: Yr. 0 = $125
• Net debt: Yr. 1 = $75, Yr. 2 = $70, Yr. 3 = $65
• EBITDA: Yr. 1 = $13, Yr. 2 = $18, Yr. 3 0 = $23
• Comparable company EV/EBITDA multiples: 10

A. 23%

B. 12%

C. 10%

D. Cannot compute from the information provided