A project costs $150,000 and generates a cash flow of $75,000 in year 1, $25,000 in year 2, and then 10,000 in years 3 through 10. What is the IRR of the project? If the WACC is 8% should the project be accepted?

a.

5.6%; yes

b.

5.6%, no

c.

-5.6%, no

d.

9%, yes