Looking to generate some additional income from the restaurant building you own, you explore the idea of installing maintenance-free solar panels on the rooftop. The utility company agrees to pay you $6,200 per year forever (with each payment received at the end of the year) for the power produced on your rooftop. There are no on-going costs to the solar panels.
If you find a company who will install the solar panels (material and labor) for $54,000, what will the Internal Rate of Return on this project be? Show your work.