DYI Construction Co. is considering a new inventory system that will cost $1.25 million. The system is expected to generate positive cash flows over the next six years in the following amounts: $400,000 in year one, $325,000 per year during years two through four, $150,000 in year five, and $180,000 in year six. DYIs required return is 8%. What is the internal rate of return (IRR) of this project?

7.93%

31.99%

9.93%

11.36%