Gormley Products Pty Ltd is considering the introduction of a new product to add to its existing product line. The company expects a reasonable level of sales for the next 5 years after this period the product sales are expected to be zero. Specialised equipment will need to be purchased to produce the new product at a cost of $100,000. Additional working capital of $16,000 will need to be introduced over the life of the product. Working capital will be recovered at the end of the product's life. Salvage value of the equipment at the end of Year 5 is $10,000.

Year	1	2	3	4	5
Pre Tax Net CASH Flows	$18,000	$22,000	$34,000	$54,000	$74,000

Additional information:

• The tax office allows depreciation of the prime cost over three years (Straight Line).
• The tax rate is 30%.
• The company uses an after-tax cost of capital of 12.5%.

Required:

After determining the Annual Net After-Tax Cash Flows, calculate the INTERNAL RATE OF RETURN (IRR) for this project.