Griffin Company is considering the investment of $136,000 in a new machine. The machine will generate cash flow of $22,500 per year for each year of its eight-year life and will have a salvage value of $8,000 at the end of its life. Griffin Company's cost of capital is 8 percent. Table 6-4 and Table 6-5.

Required:

Calculate the net present value of the proposed investment. Ignore income taxes.

Note: Round the PV factors to 4 decimal places. Ignore income taxes, and round all answers to the nearest whole dollar.

What will the internal rate of return on this investment be relative to the cost of capital?