Leo company is considering a new venture in office equipment. It expects the cost of acquisition of land and building to be $100,000. Leo company expects cash flows to be $40,000 the first year and $45,000 for the next 4 years. It will discontinue the furniture operation upon the completions of the 5th year. Assume no salvage value. The companys WACC is 10%.

What is Leo companys IRR?

A. 24%

B. 19%

C. 10%

D. 26%

E. 33%