PowerRus Company is considering a project that calls for an initial cash outlay of $50,000. The expected net cash inflows from the project are $6,000 every two years in perpetuity. What is the IRR of the project? A) 5.83% B) 6.00% C) 8.33% D) 12% E) None of the above

I understand that k=0.12. my main question is why is EAR=(1+0.12)^(1/2)-1 and not (1+0.12)^(1/0.5)-1 if 0.12 is a 2 year rate?