Instead of selling the property after year 3, Lisa could have considered renovating the house so she could charge higher rents. If Lisa renovated the house after year 3 for $20,000, she believes her after-tax cash flow in year 4 would be $7,000 and would grow at 5% annually (instead of 3% without the renovation). The ATER in year 8 would be $300,000. What is Lisa's incremental IRR for renovating the property after year 3 ? A. -25.32 B. 40.13% C. 40.13% D. 28.62%