In a competitive bid for the 2-year contract to maintain BIRs staple machines, they awarded Fal-rawi the contract. The contract commits to pay Fal-rawi $52 in the first year, then $40 in the final year, each end-of-year payments. Fal-rawi expects expenses in executing the contract to be $20 up front, another $20 during the first year, and $32 during the final year.

1. Determine the internal rate of return (IRR) for this project. [8]
2. If Fal-rawis MARR is 15% would they accept the project? [2]