A small multifamily rental property can be funded with either 100% equity or 100% debt financing. Under the equity option, the property will require \($550\),000 of capital in CF0 and return annual payments of \($30\),000 for the next four years until it is sold for \($625\),000 in year 5. Under the debt financing alternative, there is only \($10\),000 in transaction cost in CF0 and provides an annual return after debt service of \($12\),000, and in year 5 the reversion of the property returns \($65\),000 after debt service. What are the IRRs of both financing options?

a 131%, 78%

b 78%, 7%

c 131%, 7%

d 78%, 12.76%