A user is considering whether to lease or purchase a 50,000-square-foot, free-standing building. The user is a corporation whose tax rate is 21 percent for all sources of income. The corporations after-tax discount rate is 9 percent. The following T-bars are the result of an after-tax analysis performed to assist the corporation in making the decision to lease or own the building.

EOYPurchaseMinusLeaseEquals

Differential

0(972,000) 0 (972,000) 1(132,531) (158,400) 25,869 2(132,901) (158,400) 25,499 3(134,258) (158,400) 24,142 4(135,727) (158,400) 22,673 5(137,318) (158,400) 21,082 6(139,041) (166,320) 27,279 7(140,908) (166,320) 25,412 8(142,929) (166,320) 23,391 9(145,117) (166,320) 21,203 10(148,370) + 1,516,391 (166,320) 1,534,341

What is the internal rate of return of the after-tax differential cash flows?