Private Equity Partners purchases Target Company for 5.0x Forward 12 months (FTM) of EBITDA. The debt-to-equity ratio for the LBO acquisition will be 60:40. Assume the weighted average interest rate on debt to be 10%. Target expects to reach $100 million in sales revenue with an EBITDA margin of 40% in Year 1 . Revenue is expected to increase by 10% year-over-year (y-o-y). EBITDA margins are expected to remain flat during the term of the investment. Capital expenditures are expected to equal 15% of sales each year. Operating working capital is expected to increase by $5 million each year. Depreciation is expected to equal $20 million each year. Assume a constant tax rate of 40%. Private Equity Partners exits the target investment after Year 5 at the same EBITDA multiple used at entry (5.0x FTM EBITDA). Assume all debt pay-down occurs at the moment of sale at the end of Year 5. What is the IRR that Private Equity Partners can generate form the transaction. Ignore time value of money