Toyota will bring hybrid electric automobiles to market next year priced at $29,000 (this includes a $7,250 federal tax credit). At $1.91 per gallon of gasoline, it will take 11 years to recoup the difference in price between a base model Toyota Camry and its four-cylinder gasoline-only counterpart. The price difference is $3,960 . If the hybrid vehicle is driven for 15 years, what is the internal rate of return on the extra investment in the hybrid?

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