Expected IRR on LBO Equity Investment

ABC Capital is considering a leveraged buyout (LBO) of XYZ Corporation, a mature technology firm with stable cash flows. The firm's current enterprise value is estimated at $500 million, and ABC Capital intends to finance the acquisition with 60% debt and 40% equity. They expect that after three years, the firm will be able to sell for 7x EBITDA, which at that time is projected to be $80 million. The relevant interest rate on the debt is 5% and the tax rate is 30%. Based on these projections, which of the following statements best describes the expected internal rate of return (IRR) on the equity investment made by ABC Capital in this LBO?