You are considering an investment opportunity that requires an initial investment of $$95$ million today. One year from now, it will pay $$12$ million, and the payments will grow by $6\%$ every year after

that forever $($i$.$e$.$ in perpetuity$).$ The cost of capital is $14\%.$ What is the IRR?

Note that this problem is not from the textbook, so there is no Help Me Solve This or View An Example. However, this is a basic use of the PV formulas from Chapter $4,$ so you should be able to

figure it out. If you need help, review the course slides from Chapters $4$ and $8.$ We worked this specific problem in the Chapter $8$ slides.

$[$Formatting: Give your answer in percent, to one and only one decimal place, and with no percentage sign. For example, $6\mathrm{.}2,18\mathrm{.}9$ or $47\mathrm{.}6.$ The software will mark it wrong otherwise, so please

format your answer properly.$]$