Cardinal Company is considering a five$-$year project requiring a $$2,850,000$ investment in equipment with a useful life of five years and no salvage value. The company$$s discount rate is $18\%.$ The project would provide net operating income in each of five years as follows:

Sales$$$ $2,857,000$Variable expenses$1,011,000$Contribution margin$1,846,000$Fixed expenses:$$Advertising$,$ salaries, and other fixed out$-$of$-$pocket costs$ $799,000$Depreciation$570,000$Total fixed expenses$1,369,000$Net operating income$$$ $477,000$

Click here to view Exhibit $12$B$-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

$6.$ What is the project$$s internal rate of return?