XYZ Corporation has a total debt of $5 million, with a weighted average cost of debt of 8%. The company's common stock has a beta of 1.5, and the expected market return is 12%. The risk-free rate is 2%. The company's tax rate is 30%. The corporation is planning to undertake a new project with an initial investment of $2 million. The project is expected to generate cash flows of $500,000, $750,000, and $1,000,000 over the next three years. Calculate the project's internal rate of return (IRR) and make a recommendation based on your analysis.

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