In 2018, a certain manufacturing company has some existing semi-automated production equipment which they are considering replacing. This equipment has a present market value of $57,000 and a book value of $31,000. It has five more years of straight-line depreciation available (if kept) of $6,200 per year, at which time its BV would be zero. The estimated market value of the equipment fve years from now (in year 0 dollars) is $17,600. The market value escalation rate on this type of equipment has been averaging 3.7% per year. The total annual operating and maintenance (O & M) expense and other related expenses are averaging $26,800 per year New automated replacement equipment would be leased. Estimated O & M and related company expenses for the new equipment are $13,200 per year. The annual leasing costs would be $24,600. The MARR (after-tax including inflation component) is 7%, the effective tax rate is 25%, and the study period is five years. Based on an after-tax, AS analysis, should the new equipment be leased? Use the IRR method The actual IRR on the incremental cash flows is %. (Round to one decimal place.)