Suppose your firm is considering investing in a project with the cash flows shown below, that the required rate of return on projects of this risk class is 8 percent, and that the maximum allowable payback and discounted payback statistics for the project are 3.5 and 4.5 years, respectively. Use the IRR decision rule to evaluate this project.

Year 0: -$7,700

Year 1: $1,110

Year 2: $2,310

Year 3: $1,510

Year 4: $1,510

Year 5: $1,310

Year 6: $1,110

IRR:

Should it be accepted or rejected?