Please show full work if possible, would like to be able to understand the problem and solution.

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%.

5. What is Leo companys IRR?

A. 24%

B. 19%

C. 10%

D. 26%

E. 33%