1. A new gold vein is discovered by Abluka mining Company. The company must spend $1,000,000 for new mining equipment and pay $150,000 for its installation. The gold mined will net the firm an estimated $250,000 each year indefinitely. Weighted Average Cost of Capital is 14%. What is the project's IRR and should this project be undertaken, based on IRR calculation?

   		11.92%, Project should not be accepted
   		IRR=21.74%, Project should be accepted
   		16.30%, Project should be accepted
   		13.64%,Project should not be accepted