Amelias Artwork, Inc., a manufacturer of artist paints and products is planning to value a project. The project will require an initial investment of $1,250,000 and will generate cash flows of $250,000 in year 1, $312,500 in year 2, $375,000 in year 3, $437,500 in year 4, and $475,000 in year 5. The firm will be using 40% debt and 60% equity to finance the project. The cost of debt before tax is 5.19%, the cost of equity is 18.75%, and the tax rate is 40%.

Given that information determine if the following statement is True or False:

The Internal Rate of Return for any set of cash flows can be defined as the discount rate that makes the net present value of those cash flows equal to zero.