An engineering project analyst is contemplating a 3-year project which will require an initial investment for equipment of $85,000. It is anticipated that, if there is no inflation, annual revenues from the project will be $60,000 and annual cash expenses will be $25,000. It is estimated that the left-over equipment will have a market value of $45,000 at the end of three years. MARR is 10%.

a. Using 20% and 40% interest rates, what is the IRR of the project