C' educationwileycom 6 Cashback Research Make Money Onlin... ' Make Money Onlin... 9 Jared - Diamonds... Q9 Whispering Winds Pix currently uses a six-year-oid molding machine to manufacture silver picture frames. The company paid 3' $108,000 for the machine, which was state of the art at the time of purchase. Although the machine will likely last another ten years. it l will need a $3,000 overhaul in four years. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 15,000 frames per year, generating a total contribution margin of $102,000. Martson Molders currently sells a molding machine that will allow Whispering Winds Pix to increase production and sales to 20,000 frames per year. The machine. which has a ten-year life, sells for $143,000 and would cost $15,000 per year to operate. Whispering I Winds Pix's current machine costs only $8,000 per year to operate. If Whispering Winds Pix purchases the new machine. the old machine could be sold at its book value of $5,000. The new machine is expected to have a salvage value of $20,000 at the end of its ten-year life. Whispering Winds Pix uses straight-line depreciation. Click here to view the factor tabie. (a) X YouransyVerisincorrect " Calculate the new machine's net present value assuming a 16% discount rate. (For calculation purposes, useddecimal placesas displayed in the factor table provided and round final answer to 0 decimal place, 53.3. 58,971.} Net present value $ 59114 eTextbook and Media Save for Later Attempts: 1 of 3 used (b) X Your answer is incorrect.\" Use Excel or a similar spreadsheet application to calculate the new machine's internal rate of return. {Round answer to 2 decimal places. as. 1.25%.) Internal rate of return %