A company was found over 70 years ago. The company currently has one smartphone model on the market and the sales have been great. It has some limited features. The company spent $1.2 million to develop a prototype for a new smartphone that has the old features plus new features. The company has spent a further $250,000 for a marketing study to determine expected sales. The company can manufacture the new phone for $210 each in Variable cost. $5.3 million per year in fixed costs. The estimated sales volumes are 64,000, 106,000, 87,000, 78,000, 54,000 per year for the next five years. The unit price is $515. The equipment can be purchased for $38.5 million and will be depreciated on a 7 year MACRS schedule. It is believed the equipment value in 5 years will be $5.8 million. Net working capital for the smartphone will be 20% of the sales and will occur with the timing of the cash flows for the year. (no initial outlay for NWC) changes in NWC will occur first in year 1 with the first years sales. The company has a 22% corporate tax rate and a required rate of return of 12%.

What are the steps to find the IRR of the project?