Your client has recently invested P75,000,000 in a new condominium project. Below is a summary of the expected annual cash flows for phases 1,2, and 3. (Due to be finished in years 3, 5, and 7 respectively)

Phase l End of Year l Cash Flows

1 3 P27,500,000

2 5 P42,500,000

3 7 P67,500,000

What is the internal rate of return on their investment, expressed as an effective annual rate?