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The hurdle rate for a possible project being looked at by a firm is 14%. The project is estimated to cost $500,000 now if taken. The estimated net cash inflows for the project for periods 1 through 5 are the following.
period 1 - $0
period 2 - $200,000
period 3 - $225,000
period 4 - $175,000
period 5 - $100,000

(A) Calculate the IRR of the project.
(B) Calculate the NPV of the project.
(C) Should the project be taken? Why or why not?

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