Coca-Cola Company is evaluating a project that requires an initial investment of $400,000. The asset is depreciated over five years at 20% per year. The expected cash flows are:

Year	Inflow ($)	Outflow ($)
Year 1	130,000	55,000
Year 2	140,000	60,000
Year 3	150,000	65,000
Year 4	160,000	70,000
Year 5	170,000	75,000

a. Calculate the internal rate of return (IRR).
 b. What is the payback period?
 c. Assuming a cost of capital of 9%, what is the net present value (NPV) of the cash flows?
 d. Should Coca-Cola Company proceed with the project?