The Lawn Culinary Institute is evaluating a classroom remodeling project. The cost of the remodel will be $357,240 and will be depreciated over 6 years using the straight-line method. The remodeled room will accommodate 4 extra students per year. Each student pays annual tuition of $26,423.25. The before-tax incremental cost of a student (e.g., the cost of food prepared and consumed by a student) is $2,170 per year. The company’s tax rate is 40 percent, and the company requires a 11 percent rate of return on the remodeling project.

Assuming a 6-year time horizon, what is the internal rate of return of the remodeling project? (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 25%.)

Internal rate of return = %