Salem Co. has a year-end of December 31 and they are evaluating the cash flows of some potential investments/projects they are considering for their next fiscal year, starting January 1.

Salem Co. is considering a project that yields annual net cash inflows of $420,000 for Years 1 through 5, and a cash inflow of $100,000 in Year 6. The project will require and initial investment of $1,800,000. Salem's cost of capital is 10 percent and their reinvestment rate is 8 percent.

What percentage is Salem's expected IRR for this project?