Cardinal Company is considering a five$-$year project that would require a $$2,855,000$ investment in equipment with a useful life of five years and no salvage value. The company's discount rate is $14\%.$ The project would provide net operating income in each of five years as follows:

Sales

$ $2,867,000$

Variable expenses

$1,125,000$

Contribution margin

$1,742,000$

Fixed expenses:

Advertising, salaries, and other fixed

out$-$of$-$pocket costs

$ $706,000$

Depreciation

$571,000$

Total fixed expenses

$1,277,000$

Net operating income

$ $465,000$

Click here to view Exhibit $128-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Foundational $12-6($Algo$)$

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

Project's Internal rate of return $\%$