Consider an $8000 investments with 8% expected rate of return annually on a pretax basis. This investment involves the purchase of 200 shares of $40 common stock that does not pay dividends . The investor will hold this investments for three years, and the investor sells the investment in year three. The IRR for this investment is: (there will tax 25% on capital gain):

Select one:

a. 0.072

b. 0.078

c. 0.061

d. 0.069