The partnership agreement calls for the distribution to be $75\%$ to Preferred Equity and $25\%$ to the Sponsor $($without any preference$)$ until the preferred partner reaches a required return of $8\%,$ and then the sponsor receives any remaining funds. Further assume the preferred equity partner made an initial investment of $-359,883$ in year $0$; and received distributions of $$28,405$ in year $1$; $$28,405$ in year $2$; $$28,405$ in year $3$; and $$349,890$ in year $4$ when the property was sold. Assuming $$350,000$ remains to be distributed, what are the expected annualized returns $($I$.$e$.,$ IRRs$)$ to the preferred equity partner if an IRR lookback $($without preference$)$ of $8\%$ is in place?

Group of answer choices

$10\%$

$76\%$

$12\%$

$8\%$