An investment project requires an initial expenditure of $85,000 with a salvage (ending / terminal) value of $30,000. It is estimated the project will have annual returns of $21,000 each and every year for all 4 years. Should the company undertake this project if it wants to achieve a 9% annual rate of return?

a)NPV Analysis

b) Profitability Index

c) Payback Analysis

d) Will the IRR be higher or lower than 9%, and why?