The Dallas Development Corporation is considering the purchase of an apartment project for $132,000. They estimate that they will receive $20,600 at the end of each year for the next 10 years. At the end of the 10th year, the apartment project will be worth nothing.

Required:

a. If Dallas purchases the project, what will be its internal rate of return, compounded annually?

Note: Do not round intermediate calculations and round your final answer to 2 decimal places.

b. If the company insists on an 8 percent return compounded annually on its investment, is this a good investment?