Common Ltd. Is considering the purchase of new equipment that will speed up the process for producing disk drives. The equipment will cost $3,404,151 and will have a life of seven years with no expected salvage value. The expected cash flows associated with the project are below:
	Year	Cash Revenues	Cash Expenses
	1	$ 1,624,412	$ 902,000
	2	$ 1,624,412	$ 902,000
	3	$ 1,624,412	$ 902,000
	4	$ 1,624,412	$ 902,000
	5	$ 1,624,412	$ 902,000
	6	$ 1,624,412	$ 902,000
	7	$ 1,624,412	$ 902,000
	8	$ 1,624,412	$ 902,000
a.	Determine the internal rate of return for this investment						(4 marks)
b.	Assume Common Ltd has a required rate of return of 12%. Using the IRR method, should the company purchase the equipment?						(2 marks)