Garrett Boone, Marigold 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 $272,010 and will last for 8 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 $39,200 per year. He also believes the lathe will reduce energy costs by $26,500 per year. If he purchases the new lathe, he will be able to sell the old lathe for $4,112. Click here to view the factor table. (a) Calculate the lathe's internal rate of return. Internal rate of return (b) If Marigold Enterprises uses a 14% hurdle rate, should Garrett purchase the lathe? Yes No Jook and Media