OLA #11.1 A company is considering an investment that requires an immediate investment of $475,000 and an additional investment of $125,000 in year 3. The investment will generate annual profits of...

A company is considering an investment that requires an immediate investment of $475,000 and an additional investment of $125,000 in year 3. The investment will generate annual profits of $170,000 for five years, starting from year 2.

a. Calculate the IRR for this investment.

b. If the cost of capital is 7.5%, should the company undertake the investment?

Yes or No