The capital budgeting director of Sparta Corporation is evaluating a project which costs $280, is expected to last for 10 years and produce after-tax cash flows, including depreciation, of $42.50 per year. As soon as the project ends, we will sell the materials for scrape for an after-tax cash flows $60. The firm's cost of capital is 13 percent. Which of the following answers is most correct?

	The IRR is less than 5%, and we should accept the project.
	The IRR is between 5% and 15%, and we should accept the project.
	The IRR is more than 15%, and we should accept the project.
	The IRR is more than 15%, and we should reject the project.
	The IRR is less than 5%, and we should reject the project.
	The IRR is between 5% and 15%, and we should reject the project.