350,000 x [ 1-(1+R)^-5 ] / R - 1065000 = 0 => R = 19.

2%

It will be cost effective. There are many ways to evaluate whether it is worth proceeding with
a business project. The internal rate of return method allows you to compare the return on
your cash outlays for a project with the return you would get investing that money
somewhere else. For example, suppose you have $5,000 to invest in your business. You
are considering whether to purchase a new piece of equipment that would save time and
money in the manufacturing process, or to simply invest the money. If the investment gives
you an annual return of 6 percent, you would instead invest the $5,000 in new equipment if
the project saved you more than 6 percent.