The NPV is greater than $0,$ so we would accept the project.

b$.PV$ of $CF=C\frac{F_1}{(1+\text{I}\text{R}\text{R}{)}^1}+C\frac{F_2}{(1+\text{I}\text{R}\text{R}{)}^2}+$dotsdotsdotsdotsdots$+C\frac{F_n}{(1+\text{I}\text{R}\text{R}{)}^n}$

$CF=$ Cash flow; IRR $=$ Internal rate of return $($a discount rate at which NPV $=0)$; $n=$ Number of time periods

$0=-$$$45,000,000+$$$78,000,\frac{000}{1+\text{I}\text{R}\text{R}}-$$$14,000,\frac{000}{(1+\text{I}\text{R}\text{R}{)}^2}$

From Descartes rule of signs, we know there are two IRRs since the cash flows change signs twice. From trial and error IRRs are:

IRR $=53\%,-79\mathrm{.}67\%$

When there are multiple IRRs, the IRR decision rule is ambiguous. Both IRRs are correct, that is$,$ both interest rates the NPV of the project equal to zero. If we are evaluating whether or not to accept this project, we would not want to us IRR to make our decisioNN