Given the following information regarding an income producing property, determine the internal rate of return (IRR) using after tax cash flows. Expected Holding Period: 5 years; Years 1-5 the Expected After Tax Cash Flow (ATCF): $85,000; Current Market Value: $897,000; Required equity investment: $250,000; Gross Sales Price at end of year 5: $950,000 with Closing Expenses of $8,000 and Disposition Fee (Brokerage Commission) of 4% of Gross Sales Price.; Remaining Mortgage Balance at end of year 5: $425,000. Taxes due on sale is $55,000. Levered discount rate is 15%. Investors ordinary tax rate is 35%.

A. 46%

B. 41%

C. 40%

D. 44%