The capital budgeting director of Sparrow Corporation is evaluating a project that costs $200,000, is expected to last for 10 years and produces after-tax cash flows, including depreciation, of $38,503 per year. If the firm's required rate of return is 14 percent, what is the project's IRR?

d. 5 percent

b. 14 percent

e. 12 percent

a. 8 percent

c. 18 percent