Acme has branched out to rentals of office furniture to start-up companies. Desks last for six years and can be depreciated on a five-year MACRS schedule. Assume administrative costs are $390 per desk at the beginning of each year. The cost of capital is 12% and the tax rate is 34%. Lease payments are made in advance, that is, at the start of each year. The inflation rate is zero. Suppose a blue-chip company requests a six-year financial lease for a $4,900 desk. The company has just issued five-year notes at an interest rate of 9% per year.

What is the break-even lease rate in this case? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Break-even rate $