Greentree Company Ltd., a private contracting firm, has an opportunity for a diseased citrus tree removal contract over the next 5 years. The contract calls for the municipal government to pay Greentree $300,000 at the start of the contract and nothing for the remainder of the contract. Greentree estimates that its expenses will be $85,000 at the end of each of the 5 years. If Greentree uses IRR to evaluate its opportunities, it would only accept this contract if the discount rate (hurdle rate) is:

(A)Greater than 10.42%

(B) Less than 10.42%

(C) Greater than 12.86%

(D)Less than 12.86%

(E) Greater than 28.33%

Without Excel