The management of Leahy Enterprises is currently evaluating the following investment proposal:

	Time 0	Year 1	Year 2	Year 3	Year 4
Initial investment	$300,000
Net operating cash flows		$100,000	$100,000	$100,000	$100,000

Present Value of an Annuity of $1

Period	8%	10%	12%	14%	16%	18%
1	0.82593	0.90909	0.89286	0.87719	0.86207	0.84746
2	1.78326	1.73554	1.69005	1.64666	1.60523	1.56564
3	2.57710	2.48685	2.40183	2.32163	2.24589	2.17427
4	3.31213	3.16987	3.03735	2.91371	2.79818	2.69006

The proposals payback period and proposals internal rate of return (IRR) approximate:

Select one:

A. Payback period 3 years, IRR 8 percent

B. Payback period 4 years, IRR 12 percent

C. Payback period 3.5 years, IRR 16 percent

D. Payback period 3 years, IRR 12 percent