Cardinal Company is considering a five-year project that would require a $2,955,000 investment in equipment with a useful life of five years and no salvage value. The company's discount rate is 16%. The project would provide net operating income in each of five years as follows:

Sales$2,871,000

Variable expenses1,018,000

Contribution margin1,853,000

Fixed expenses:

Advertising, salaries, and other fixed out-of-pocket costs$753,000

Depreciation591,000

Total fixed expenses1,344,000

Net operating income$509,000

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