The Danforth Tire Company will purchase of a new machine that would increase the speed of manufacturing and save money. The net cost of this machine is $66,000. Below are the annual cash flow projections. If the cost of capital is 23 percent a) what is the IRR? b) would it be profitable to do this project? Why or why not?

Year Cash Flow 1 ........................................... $21,000 2 ........................................... 29,000 3 ........................................... 36,000 4 ........................................... 16,000 5 ........................................... 8,000