Lowell Inc. projects unit sales for a new project with a life of FOUR YEARS as follows:

Year	Unit Sales
1	10,000
2	12,000
3	14,000
4	16,000

Production will require Lowell must have an amount of NOWC on hand equal to 12 percent of the upcoming year's sales. Total fixed costs are $100,000 per year, variable production costs are $240 per unit, and the units are priced at $300 each. The sale price and variable costs will increase by 2 percent every year. The equipment needed to begin production has an installed cost of $2,000,000. The equipment qualifies as 5-year MACRS property.

Years	1	2	3	4
Depreciation rate	20%	32%	19%	12%

In FOUR years, this equipment can be sold for about 24 percent of its acquisition cost. Lowell is in the 25 percent marginal tax bracket and has a required return on all its projects of 18 percent. Based on these preliminary project estimates, what is the IRR of the project?