A firm has a project with the following cashflows.

Year Cash Flow

0 $100, 000

1 45, 000

2 52, 000

3 43, 000

a) Assume the firm evaluates all of its projects by applying the IRR rule. If the required return is 18%, should the firm accept the following project?

b) Suppose the firm uses NPV decision rule. At a required return of 11%, should the firm accept this project? What if the required return was 23%