The university has decided to add a snack bar to the Lady Beaverbrook Gym. It will cost $53,000 to set up the space, and should generate profits of $12,000/year for the next five years, after which the building will most likely be demolished. At that point the used equipment (convection ovens, friers, refrigerators, microwaves, icemaker, etc.) will be sold at an expected sales price of $9,500. Demonstrate the IRR of the snack bar project is 9%