Blake Shelton, Inc., is considering to build a manufacturing plant that will make bottled Strawberry Juice. The project which will produce cash inflows of $145,000 a year for 2 years followed by $75,000 a year for the following 5 years. What is the internal rate of return if the initial cost of the project is $400,000? (all numbers are in millions of $s)
(A) 11.28 percent
(B) 16.09 percent
(C) 17.53 percent
(D) 18.91 percent
Please provide calculation & detail explanation.