A company is considering opening a new store. The companys WACC (weighted average cost of capital) is 11%, so this will be the required rate of return for this expansion. They also would like a 32-month payback period so that capital will become available for other projects. They are subject to a 23% tax rate. Opening the store will require fixtures, etc., which will cost $1280928 before the store can begin operating. These will be depreciated straightline over 5 years assuming a 9% salvage value. The salvage amount will also be included as part of the terminal value, representing the amount recaptured at the end of year 5. There will be no tax effect in the salvage value because the book value is expected to be 9% of the historical cost at the end of year 5. There will be a need for $10860 for net working capital before the store opens, and net working capital will grow equally each year through year 4. At the end of year 5, the total net working capital will be $60000. This amount will be released in the final year as part of the terminal value.

Sales for each year are forecasted to be:

Year 1: $434,219 Year 2: $947,136 Year 3: $1,482,030 Year 4: $2,100,000 Year 5: $2,100,000 Cash operating costs will be 67% of revenue for each year.

What is the a Internal Rate of Return? Use excel to answer