You are analyzing a project and have prepared the following data:
 



a. Based on the net present value of this project, should you reject or accept this project?

b. What is the internal rate of return (IRR) of this project? Should you reject or accept this project? 

Cash flow -S169,000 S 46,200 S 87,300 S 41,000 S 39,000 Year 1 2 3 4 Required payback period Required AAR Required return 2.5 years 7.25 percent 8.50 percent