Catriona plans to open a retail centre in a storefront. The equipment will cost $155,000. Catriona expects the after-tax cash inflows to be $33,000 annually for eight years, after which she plans to scrap the equipment and retire. Assume the required return is 14%.

a) What is the project's IRR?

b) Should it be accepted? Explain why or why not.

c) Identify and explain two situations in which Net Present Value should be used as a decision rule instead of IRR.