Company ABC received a contract from company XYZ, worth $460 million to build a product. XYZ will pay $50 million when the contract is signed, another $360 million at the end of the first year, and the $50 million balance at the end of second year. The expected cash outflows required to produce the product are estimated to be $150 million now, $100 million during the first year, and $218 million during the second year. The firms MARR is 25% for this project.

a) Compute the NPW at 25%

b) Compute the values of i*s for this project

c) Make an accept-reject decision based on the results in part (b). Calculate IRR.