$13)$ Amy was evaluating the feasibility of a project that has an initial investment of $$210,000$ and subsequent investments of $$155,000$ in the first and second years. From the third year onwards, it will generate cost savings of $$210,000$ every year for seven years.

a$)$ If the project has a terminal value of $$105,000,$ what is the Internal Rate of Return $($IRR$)?$

$3$ marks

b$)$ Should the project be accepted if the company's cost of capital is $23\mathrm{.}00\%?$ Why?