Question 2 (10 points)

SECTION 5.2: Delcimer Mining Corportation is considering starting up a new lithium mine. It would cost the company $15,000,000 to build and set up the mine. The mine would produce profits of $1,000,000 in its first year, which would continue at the same $1,000,000 per year for ten years and then start to decline by $20,000 each year. After 25 years, they expect they would sell the mine for $3,500,000.

What would the internal rate of return be for this investment? (Give your answer as a percent rounded to two decimal places.)