Consider the following cash flows:

0 1 2 3

|------------------|------------------|------------------|

100 +40 +40 +40

What is the IRR of this investment? Enter your answer as a percent to the nearest hundredth (e.g., 9.99%). This can be done using a financial calculator, the IRR function in Excel, or Goal Seek in Excel. Show how you got the answer.

Would you choose to invest in these cash flows if the opportunity cost of capital is 9%? (Yes or No)