The capital budgeting director of Dancer Corporation is evaluating a project that costs $350,000, and is expected to last for 8 years and produce after-tax cash flows of $85,295 per year. If the firm's cost of capital is 12 percent and its tax rate is 40 percent, what is the project's IRR?

a. -6.6% b. 12.3%

. 15.5%

d. 17.8% e. 19.5%