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 $289,225 and will last for 9 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 $39,500 per year. He also believes the lathe will reduce energy costs by $26,250 per year. If he purchases the new lathe, he will be able to sell the old lathe for $6,303. Click here to view the factor table. (a) Calculate the lathes internal rate of return If Farish Enterprises uses a 15% hurdle rate, should Garrett purchase the lathe?