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I sign a contract that guarantees me an immediate payment of $2 000, but then I have to invest $800 a year for ten years.

I sign a contract that guarantees me an immediate payment of $2 000, but then I have to invest $800 a year for ten years. At the end of the tenth year I get a further payment of $8 000. What is my internal rate of return on the contract?

A) There are two solutions: 8% and 16%.

B) There are two solutions: 13% and 25%.

C) There are two solutions, 15% and 30%.

D) There are two solutions: 18% and 24%.

E) There is a single solution: about 22%.

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