The Mirror Company plc is appraising a capital project which would require an investment of 2.5m. The incremental cash inflows would be 750k for the next three years and then 450k for the following two years. At the end of five years the project would be shut down with no residual value. The company's required return on capital is 8%. What is the Internal Rate of Return (IRR) of the project?

Hint: Discount rate 8% generates positive NPV; and discount rate 10% generates negative NPV.