Equestrian Wardrobe is setting up to manufacture a new line of riding boots. The cost of the manufacturing equipment is $1,750,000. Expected net cash flows over the next four years are $725,000, $850,000, $1,200,000, and $1,500,000. Given the company's cost of capital of 15 percent, what is the internal rate of return (IRR) of this project? (Round to closest answer.)

41%

15%

37%

Not possible to calculate with the given information