Kate and Amy bought houses at the same time and are considering refinancing when the interest rates drop. Kate's IRR on the refinancing option is 15% while Amy's IRR is 10%. Choose the correct recommendation for Kate and Amy.
A. One can't make a recommendation without knowing Amy's and Kate's discount rates
B. Kate should refinance and Amy should not
C. Neither of them should refinance
D. Both should refinance
E. Amy should refinance but Kate should not