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 $62,000 and a book value of $27,000. It has five more years of straight-line depreciation available (if kept) of $5,400 per year, at which time its BV would be zero. The estimated market value of the equipment five years from now (in year 0 dollars) is $18,300. The market value escalation rate on this type of equipment has been averaging 3.3% per year. The total annual operating and maintenance (O & M) expense and other related expenses are averaging $26,100 per year. New automated replacement equipment would be leased. Estimated O & M and related company expenses for the new equipment are $12,600 per year. The annual leasing costs would be $23,100. The MARR(after-tax including inflation component) is 8%, the effective tax rate is 25%, and the study period is five years. Based on an after-tax, A$ analysis, should the new equipment be leased? Use the IRR method.

if excel is used please show how you do it!

Problem 9-24 (algorithmic) Question Help 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 $62,000 and a book value of $27,000. It has five more years of straight-line depreciation available (if kept) of $5,400 per year, at which time its BV would be zero. The estimated market value of the equipment five years from now (in year 0 dollars) is $18,300. The market value escalation rate on this type o equipment has been averaging 3.3% per year. The total annual operating and maintenance O & M expense and other related expenses are averaging New automated replacement equipment would be leased. Estimated O & M and related company expenses for the new equipment are $12,600 per year. The annual leasing costs would be $23,100. The MARR $26,100 per year after-tax ncluding inflation component) IS 8%, the effective tax rate is 25%, and the study period 1s five years. Based on an a ter-tax,A$ analysis s ou dhe new equipment be eased Sethe l method The actual IRR on the incremental cash flows is %. (Round to one decimal place.)