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VALUE Corporation is considering investing in a new facility. The estimated cost of the facility is Br. 2,045,000. It will be used for 12 years,

VALUE Corporation is considering investing in a new facility. The estimated cost of the facility is Br. 2,045,000. It will be used for 12 years, then sold for Br. 716,000. The facility will generate annual cash inflows of Br. 400,000 and will need new annual cash outflows of Br. 150,000. The company has a required rate of return of 7%. Calculate the internal rate of return on this project, and discuss whether the project should be accepted.

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