Supervenes is a freight delivery company, it uses the internal rate of return (IRR) to select projects. The treasurer was presented with an opportunity to invest in project Sigma which requires an...

Supervenes is a freight delivery company, it uses the internal rate of return (IRR) to select projects. The treasurer was presented with an opportunity to invest in project Sigma which requires an initial investment of $20,000 and generates cash inflows of $8,000 per year for 5 years. The cost of capital is 10%. Required: Calculate the IRR for the Sigma project and advice if the project should be taken. The full calculation must be shown for marks.