XYZ is evaluating a project that would require an initial investment of $70,900.00 today. The project is expected to produce annual cash flows of $8,000.00 each year forever with the first annual cash flow expected in 1 year. The NPV of the project is $7,900.00. What is the IRR of the project?

11.14% (plus or minus 0.02 percentage points)

12.70% (plus or minus 0.02 percentage points)

10.15% (plus or minus 0.02 percentage points)

11.28% (plus or minus 0.02 percentage points)

None of the above is within 0.02 percentage points of the correct answer