Tesla Motors is considering purchasing a new state - of - the - art robotic assembly line to enhance the production of electric vehicle components. The initial cost of the assembly line is $63, 000, and it has a useful life of 12 years. There is no salvage value for the assembly line. Due to the efficiency of the new equipment, labor costs are expected to increase by $7, 000 per year. However, the company anticipates a reduction in maintenance costs of $16, 000 per year. The Minimum Attractive Rate of Return (MARR) for the company is 9% .

Calculate the IRR (internal rate of return) of purchasing the new assembly line using interpolation. You must show your work. Hint: Use the MARR as a starting point.