A firm is considering purchasing new equipment that will cost 650,000 SAR. The equipment is expected to generate positive cash flows over the next four years in the amounts of 320,000 SAR in year one, 325,000 SAR in year two, 175,000 SAR in year three, and 120,000 SAR in year four. Its required rate of return is 8%. What is the internal rate of return (IRR) of this project? Is this project acceptable or not based on the IRR?

		19.87%, accept
		21.57%, reject
		20.14%, accept
		25.13%, reject