Exercise 9-12 Garrett Boone, Flounder Enterprises' vice president of operations, needs to replace an automatic lathe on the production line. The model he is considering has a sales price of $267,950 and will last for 6 years. It will have no salvage value at the end of its useful life. Garrett estimates the new lathe will reduce raw materials scrap by $38,600 per year. He also believes the lathe will reduce energy costs by $27,000 per year. If he purchases the new lathe, he will be able to sell the old lathe for $5,714. Click here to view the factor table. (a) Calculate the lathe's internal rate of return. Internal rate of return $ (b) If Flounder Enterprises uses a 12% hurdle rate, should Garrett purchase the lathe? Click if you would like to Show Work for this question: Open Show Work