Flint Pix currently uses a six-year-old molding machine to manufacture silver picture frames. The company paid $95,000 for the machine, which was state ofthe art atthe time of purchase. Although the machine will likely last another ten years, it will need a $12,000 overhaul in fouryears. More important, it does not provide enough capacity to meet customer demand. The company currently produces and sells 9,000 frames per year, generating a total contribution margin of $92,500. Martson Molders currently sells a molding machine that will allow Flint Pix to increase production and sales to 12,000 frames per year. The machine, which has a ten-year life, sells for $133,000 and would cost $14,000 per year to operate. Flint Pix's current machine costs only $3,000 per year to operate. If Flint 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 $20,200 at the end of its tenyear life. Flint Pix uses straightline depreciation. (b) 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, e.g. 1.25%.) Internal rate of return %