Wayne Company is considering a long-term investment project called ZIP. ZIP will require an investment of $120,000. It will have a useful life of 4 years and no salvage value. Annual cash inflows would increase by $80,000, and annual cash outflows would increase by $40,000. The companys required rate of return is 12%.

Calculate the internal rate of return on this project. (Round answers to 0 decimal places, e.g. 15%.)

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

2. Determine whether this project should be accepted?