Use the following information to answer Problems A & B. Show the steps to get this answer. Do not use excel

Table 1

Kraft is considering a new project. Cash flow analysis indicates the following:

Initial cost in Year 0:

Year 0 -212,000

Year 1 $12,000

Year 2 $15,000

Year 3 $25,000

Year 4 $50,000

A. Refer to Table 1 above. What is the internal rate of return (IRR) for this project? Assume the wacc = 8%. Would you accept or reject the project? Why?

B. Refer to Table 1 above. What is the NPV if wacc = 10%? Would you accept or reject the project? Why?