The Capital Budgeting Director of Sparrow Corporation Is Evaluating a Project

The capital budgeting director of Sparrow Corporation is evaluating a project which costs $200,000,is expected to last for 10 years and produce after-tax cash flows,including depreciation,of $44,503 per year.If the firm's cost of capital is 14% and its tax rate is 40%,what is the projected IRR?

A) 8%
B) 14%
C) 18%
D) -5%
E) 12%