Rent-to-Own Equipment Co. is considering a new inventory system that will cost $550,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $120,000 in year two, $110,000 in year three, and $80,000 in year four. Rent-to-Own's required rate of return is 8%. What is the internal rate of return of this project?

a.

8.07%

b.

8.89%

c.

9.26%

d.

10.52%