Clyde has the opportunity to purchase a large building for $750,000 He will need to spend additional $175,000 to renovate and convert to an upscale dining establishment. He estimates the following after tax cash flows. Year 6 cash flow includes the terminal value of the venture.

The Internal Rate of Return (IRR) of the venture is 15, 6, 10, or 12%?

If Clyde's cost of capital is 8%, Clyde will "accept or reject" the venture?

Year	Cash-flows
1	90,000
2	100,000
3	105,000
4	120,000
5	126,000
6	900,000