The WACC on a project is 3%. What is the modified internal rate of return on an investment that costs $1000 today, costs an additional $200 at the end of the 1st year, pays $2500 at the end of year 2 and costs $50 at the end of year 3?

a. approx 28%

b. approx 38%

c. approx 89%

d. approx 3%

e. None of the answers are correct