A manufacturing company has some existing semiautomatic production equipment that it is considering replacing. This equipment has a present MV of $55 comma 000 and a BV of $31 comma 500. It has five more years of depreciation available under MACRS (ADS) of $7 comma 000 per year for four years and $3 comma 500 in year five. (The original recovery period was nine years.) The estimated MV of the equipment five years from now is $18 comma 500. The total annual operating and maintenance expenses are averaging $26 comma 000 per year. New automated replacement equipment would then be leased. Estimated annual operating expenses for the new equipment are $12 comma 500 per year. The annual leasing costs would be $23 comma 900. The MARR (after taxes) is 8% per year, tequals40%, and the analysis period is five years. (Remember: The owner claims depreciation, and the leasing cost is an operating expense.) Based on an after-tax analysis, should the new equipment be leased? Base your answer on the IRR of the incremental cash flow.