Bob Jensen Incorporated purchased a $$700,000$ machine to manufacture specialty taps for electrical equipment. Jensen expects to sell all it can manufacture in the next $10$ years. To encourage capital investments, the government has exempted taxes on profits from new investments. This legislation is to be in effect for the foreseeable future. The machine is expected to have a $10-$year useful life with no salvage value. Jensen uses straight$-$line depreciation. Jensen uses a $10\%$ discount rate in evaluating capital investments, the investment is subject to taxes, and the projected pretax operating cash inflows are as follows:

Year Pretax Cash Inflow

$1$ $ $70,000$

$286,000$

$3129,000$

$4215,000$

$5258,000$

$6323,000$

$7291,000$

$8259,000$

$9130,000$

$1087,000$

Jensen has been paying $25\%$ for combined federal, state, and local income taxes, a rate that is not expected to change during the period of this investment. The firm uses straight$-$line depreciation. Assume, for simplicity, that MACRS depreciation rules do not apply.

$5.$ The internal rate of return $($IRR$).($Do not round intermediate calculations. Round your final answer to $1$ decimal place.$)6.$ The modified internal rate of return $($MIRR$).($Do not round intermediate calculations. Round your final answer to $1$ decimal place.$)($In conjunction with this question, you might want to consult either of the following two references: MIRR Function and$/$or IRR in Excel.$)1.$ Unadjusted payback period years $2$a$.$ ARR based on initial investment $\%2$b$.$ ARR based on average investment $\%3.$ NPV $4.$ Present value payback period years $5.$ Internal rate of return $($IRR$)\%6.$ Modified internal rate of return $($MIRR$)\%$