You Are Offered a Chance to Buy an Asset for $5,250

Multiple Choice

You are offered a chance to buy an asset for $5,250 that is expected to produce cash flows of $750 at the end of Year 1,$1,000 at the end of Year 2,$850 at the end of Year 3,and $6,250 at the end of Year 4.What rate of return would you earn if you bought this asset?

A) 15.56%
B) 16.75%
C) 18.61%
D) 16.91%
E) 13.36%