Consider a case where a fund with committed capital of $25 million draws down $5 million at its inception and $20 million at its second anniversary. The capital from the first drawdown is invested in a company that is acquired for $22.25 million at the end of the first year, and the proceeds of the sale are immediately returned to investors. The capital from the second drawdown, however, is invested in firms that prove unsuccessful and are ultimately liquidated for a total loss.: Year Cash Flow 0 -$ 5 million 1 $22.25 million 2 -$20 million Because the first and third cash flows are drawdowns from the limited investors, they are negative while the return of the proceeds could be positive. One analyst says that the project has an IRR of between 20 and 30 percent. The other analyst calculates an IRR of just under 250 percent, but fears his calculator's battery is low and may have caused an error. You agree to settle the dispute by analyzing the project cash flows. Which statement best describes the IRR for this project?

A) There are multiple IRRs of approximately 12.7 percent and 787 percent. B) This project has no IRR, because the NPV profile does not cross the X axis. C) There are multiple IRRs of approximately 25 percent and 220 percent. D) There are multiple IRRs of approximately 12.7 percent and 250 percent. E) None of the above is correct.