Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $123,136. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $81,200, and annual cash outflows would increase by $39,600. The companys required rate of return is 12%.

Calculate the internal rate of return on this project

A.

Internal rate of return on this project is between ________% and ________%.

B.

Determine whether this project should be accepted?