You are considering opening a new business to sell dartboards. You estimate that in order to start the business, your manufacturing equipment will cost $100,000 and facility updates will cost $200,000. You are able to raise $120,000 from investors with a promise of a 12% return on their investment. Your bank has agreed to loan you the remaining $180,000 at a 7% rate of interest. You estimate that you will bring in $50,000 per year in profit and that your equipment and facility updates will last 10 years. Thus, in the current year (year zero), you incur a $300,000 cost, and in years one through ten of your investment, you make $50,000 in profit each year.

What is your Internal Rate of Return? What does this tell you about the profitability of your investment?