What is the true IRR of the project with the following cash flows if the firm would be able to reinvest the cash inflows at a rate of return equal to 10%?

Year 0: -$400

Year 1: $200

Year 2: $200

Year 3: $500

Select one:

a. 36.88%

b. 33.98%

c. 25.09%

d. 19.88%

e. 29.93%