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Consider the following two investment opportunities: MARR =10% Year 0 1 2 3 4 5 6 7 8 Option 1 -$800 $215 $215 $215 $215

Consider the following two investment opportunities: MARR =10%

Year

0

1

2

3

4

5

6

7

8

Option 1

-$800

$215

$215

$215

$215

$215

$215

$215

$215

Option 2

-$800

$ 25

$ 25

$ 25

$ 25

$ 25

$ 25

$ 25

$750

  1. Calculate the Internal Rate of Return (IRR) for Option 1 and 2

A. IRR15%;

IRR210%;

B. IRR110%;

IRR22%;

C. IRR121%;

IRR22%;

D. IRR130%;

IRR210%;

E. IRR140%;

IRR210%;

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