Bill plans to open a do-it-yourself dog bathing center in a storefront. The bathing equipment will cost $180,000. Bill expects the after-tax cash inflows to be $40,000 annually for seven years, after which he plans to scrap the equipment and retire to the beaches of Jamaica. Assume the required return is 19%. What is the project's IRR? Should it be accepted?

Select one:

a. 12.2%; no

b. 16.3%; yes

c. 12.2%; yes

d. 17.0%; indifferent

e. 12.4%; no