Brittany was evaluating the feasibility of a project that has an initial investment of $215,000 and subsequent investments of $170,000 in the 1st and 2nd years. From the 3rd year onwards, it will generate cost savings of $235,000 every year for 7 years.

a. If the project has a terminal value of $100,000, what is the Internal Rate of Return (IRR)?

%

Round to two decimal places

b. Should the project be accepted if the company's cost of capital is 20.00%? yes or no?