Lamar Company is considering a project that would have a five-year life and require a $2,400,000 investment in equipment. At the end of five years, the project would terminate and the equipment would have no salvage value. The project would provide net operating income each year as follows:

Sales		$3,200,000
Variable expenses..		1,800,000
Contribution margin...		1,400,000
Fixed expenses:
Advertising, salaries, and other
fixed out-of-pocket costs..	$700,000
Depreciation..	300,000
Total fixed expenses...		1,000,000
Net operating income.		$ 400,000

The companys discount rate is 12%.

1. Find the projects internal rate of return to the nearest whole percent.