Thom Corporation is considering an investment opportunity with the following expected net cashinflows: Year1, $260,000; Year2, $340,000; Year3, $390,000. The company uses a discount rate of11%, and the initial cost of the investment is$770,000.

Present Value of$1:

10%

11%

12%

13%

14%

15%

1

0.909

0.901

0.893

0.885

0.877

0.870

2

0.826

0.812

0.797

0.783

0.769

0.756

3

0.751

0.731

0.712

0.693

0.675

0.658

4

0.683

0.659

0.636

0.613

0.592

0.572

5

0.621

0.593

0.567

0.543

0.519

0.497

The IRR of the project willbe:

A.

between11% and12%

B.

more than11%

C.

less than11%

D.

between12% and13%