Your firm is considering overhauling its production plant. There are two options with the following cash flows (in millions of dollars) 1) -15, 8, 8, 8 2) -60, 30, 30, 30. The first number is a negative PV as the upfront cost. Calculate the IRR of option #2. The cost of capital for both of these projects is 12%.

Select one:

a.

32.15%

b.

31.25%

c.

27.76%

d.

23.38%

e.

21.90%