To find the internal rate of return (IRR) for the equity holders, we need to identify the cash flows associated with the equity tranche from the table (column 10, Equity Flow) and set the net present value (NPV) to zero:

• t = 0: $(5.00)$ (Initial outlay)
• t = 1: $0.820$
• t = 2: $0.565$
• t = 3: $0.310$
• t = 4: $0.055$
• t = 5: $6.101$

The IRR is the discount rate $r$ that solves the following equation: $-5.00 + \frac{0.820}{1+r} + \frac{0.565}{(1+r)^2} + \frac{0.310}{(1+r)^3} + \frac{0.055}{(1+r)^4} + \frac{6.101}{(1+r)^5} = 0$

Using a financial calculator or testing the given options, let's test 11.44% ($r = 0.1144$):

• PV of $CF_1 = 0.820 / 1.1144 \approx 0.7358$
• PV of $CF_2 = 0.565 / (1.1144)^2 \approx 0.4549$
• PV of $CF_3 = 0.310 / (1.1144)^3 \approx 0.2241$
• PV of $CF_4 = 0.055 / (1.1144)^4 \approx 0.0357$
• PV of $CF_5 = 6.101 / (1.1144)^5 \approx 3.5516$

Sum of PVs = $0.7358 + 0.4549 + 0.2241 + 0.0357 + 3.5516 \approx 5.0021$. This matches the initial investment of `$5.00` (within rounding differences).

Thus, the internal rate of return (IRR) is nearest to 11.44%.