Garrett Boone, Farish 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 $285, 352 and for 7 years. It will have no salvage value at the end of its useful life. Garrett estimates the new lathe will reduce raw materials scrap but $36, 800 per year. He also believes the lathe will energy costs by $26, 500 per year. If he purchases the new lathe, he will be able to sell the old lathe for $5, 325. Calculate the lathe's internal rate of return. If Farich Enterprises uses a 13% hurdle rate, should Garret purchase the lathe