Mr. Saleem is evaluating profitability of new machinery for his leather factory. He has determined that the after-tax cash flows from the machinery will be $60,000; $80,000; $120,000; $150,000; and $190,000, respectively, from Years 1 through 5. The initial cash outlay will be $400,000.

Calculate IRR (Evaluate IRR between 10% to 15%). If Mr. Ajmal Cost of Capital is 14%. Would he invest in new machinery?