GTO Incorporated is considering an investment costing $259,800 that results in net cash flows of $40,000 annually for 11 years. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) (a) What is the internal rate of return of this investment? (b) The hurdle rate is 10.5%. Should the company invest in this project on the basis of internal rate of return?

\begin{tabular}{|l|l|l|} \hline a. Internal rate of return & % \\ \hline b. Should the company invest in this project on the basis of internal rate of return? & \\ \hline \end{tabular}