X Company is considering producing and selling a new product. After conducting a market research study that cost $5,000, company estimates are that sales of the product will be 7,500 units in each of the next four years, contribution margin per unit will be $5.90, and annual fixed costs will be $11,966.

In order to produce the new product, additional equipment would have to be purchased, costing $120,000, with no salvage value at the end of four years.

What is the internal rate of return of producing and selling this new product?