Cardinal Company is considering a five$-$year project that would require a $$2,855,000$ investment in equipment with a useful life of five years and no salvage value. The company$$s discount rate is $14\%.$ The project would provide net operating income in each of five years as follows:

Sales $ $2,867,000$

Variable expenses $1,125,000$

Contribution margin $1,742,000$

Fixed expenses:

Advertising, salaries, and other fixed out$-$of$-$pocket costs $ $706,000$

Depreciation $571,000$

Total fixed expenses $1,277,000$

Net operating income $ $465,000$

Click here to view Exhibit $7$B$-1$ and Exhibit $7$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

$6.$ What is the project$$s internal rate of return?