Randel Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $3,455,400 and will produce net cash savings of $600,000 per year. The system has a projected life of 9 years.

Required:

Calculate the IRR for the new production system. For discount factors use Exhibit 14B-2. Round your answer to the nearest whole percentage.