A project requiring an initial outlay of $2,200,000 at t = 0 is expected to provide the following array of annual cash flows starting at t = 2: $400,000, $600,000, $800,000, $1,000,000. Using a discount rate of 12 percent,

a. Calculate the net present value of the project using a calculator.

b. Calculate the net present value of the project using a spreadsheet. Check that you got the same result as with the calculator.

c. Without performing any additional calculations, is the IRR of the project larger or smaller than 12 percent?