Chad was evaluating the feasibility of a project that has an initial investment of $220,000 and subsequent investments of $170,000 in the 1st and 2nd years. From the 3rd year onwards, it will generate cost savings of $205,000 every year for 8 years.

a. If the project has a terminal value of $115,000, what is the Internal Rate of Return (IRR)?

b. Should the project be accepted if the company's cost of capital is 23.00%?