Garrett Boone, Whispering Winds Enterprises' vice president of operations, needs to replace an automatic lathr on the production line. The model he is considering has a sales price of $309,543 and will last for 15 years. It will have no salvage value at the end of the useful life. Garrett estimates the new lathe will reduce raw materials scrap by $36,000 per year. He also believes the lathe will reduce energy costs by $4,000 per year. If he purchase the new lathe, he will be able to sell the old lathe for $5,300. Calculate the lathe's internal rate of return