Volkswagen Group is evaluating a project that requires an initial investment of $500,000. The asset is depreciated over five years at 20% per year. The expected cash flows are:

Year	Inflow ($)	Outflow ($)
Year 1	150,000	60,000
Year 2	160,000	65,000
Year 3	170,000	70,000
Year 4	180,000	75,000
Year 5	190,000	80,000

a. Calculate the internal rate of return (IRR).
 b. What is the payback period?
 c. Assuming a cost of capital of 9%, what is the net present value (NPV) of the cash flows?
 d. Should Volkswagen Group accept the project?