A firm evaluates all of its projects by applying the IRR rule. If the required return is 16%, should the firm accept the following project?

Year Cash Flow

0 -$34,000

1 16,000

2 18,000

3 15,000

I know that:

0 = $34,000 + $16,000/(1+IRR) + $18,000/(1+IRR)^2+ $15,000/(1+IRR)^3

My question is: What does IRR equal as the answer is IRR= 20.97%