Purple Whale Foodstuffs Inc. is evaluating a proposed capital budgeting project $($project Sigma$)$ that will require an initial investment of $$850,000.$

Purple Whale Foodstuffs Inc. has been basing capital budgeting decisions on a project's NPV; however, its new CFO wants to start using the IRR method for capital budgeting decisions. The CFO says that the IRR is a better method because returns in percentage form are easier to understand and compare to required returns. Purple Whale Foodstuffs Inc.$\text{'}$s WACC is $8\%,$ and project Sigma has the same risk as the firm's average project.

The project is expected to generate the following net cash flows:

$\backslash$table$[[$Year$,$Cash Flow$],[$Year $1,$$$275,000$