What is the Internal Rate of Return (IRR) for the cash flows provided

What is the Internal Rate of Return (IRR) for the cash flows provided in the table below?

Note: The negative cash flow for year 0 is the initial investment for the project. The required rate of return is 8%.
Year Cash Flow
0 -$100,000
1 $45,000
2 $45,000
3 $45,000

A) 8.00%
B) 9.70%
C) 12.41%
D) 16.65%

ANSWER

D
Explanation: D) Via Calculator: N = 3, PV = -100,000, PMT = 45,000, FV = 0, Solve for r = IRR = 16.65%.