A company proposes to install a machine involving a capital cost of 1, 80,000. The life of the machine is 5years and it's salvage value at the end of the life is nil. The machine will produce the net operating income after depreciation of 34,000 per annum. The company's tax rate is 45%.

The net present value factor for 5years are as under:

Discounting rate: 14 15 16 17 18

Cumulative factor: 3.43 3.35 3.27 3.20 3.13

You are required to calculate the internal rate of return of the proposal.