Calculation of IRR for Techno-Corp’s' project-Multiple Choice Question

Question

Techno-Corp has come up with a new medical instrument. Development will take Techno-Corp four years and cost $250,000 per year, with the first of the four equal investments payable today upon acceptance of the project.  Once in production the medical instrument is expected to produce annual cash flows of $200,000 each year for 10 years. Techno-Corp’s discount rate is 10%.

The IRR for Techno-Corp’s' project is closest to:

A) 10.4%

B) 10.0%

C) 11.0%

D) 15.1%