Cheyenne Corporation is evaluating a proposal to acquire a new equipment. The equipment would require an investment of $417,860.00, including freight and installation cost of $20,000.00. It expected to have a 10-year life with no salvage value at the end of its life.

It has been estimated that the new equipment would increase the company's cash inflows, net of expenses and income taxes by $68,000.00

The company is subject to the 32% income tax rate. Its cost of capital is 8%.

The equipment's internal rate of return (IRR) is