Problem: Westlake Corp. has a capital structure that has 60-percent debt at a cost of 10 percent and 40-percent equity. Westlake's stock has a beta of 1.6, market risk premium of 7 percent, and risk-free rate of 3 percent. The firm has a potential project on hand that requires an initial investment of $125,000 and generates an annual yearend after-tax cash flow of $36,000 for five years. Calculate the IRR of this project. Decide if the project should be accepted or not, assuming the project is less risky for the firm; Tc = 35 percent.