Your client Anna is considering making a 5-year investment in her friends bakery business. She would have to initially invest $50,000 into the business. She can expect the following cash flows from the business:

Year 1 $9,000

Year 2 $4,000

Year 3 Nothing

Year 4 $7,000

Year 5 $6,000

After the 5^th year, along with the cash flow listed above, her friend will return $45,000 of the initial $50,000 investment. What is Annas IRR on this investment and, if her required rate of return is 10%, would you recommend Anna make this investment?

a. 11.05%, Yes

b. -11.05%, No

c. 8.85%, Yes

d. 8.85%, No