Southern Manufacturing Limited is considering the investment of $$88,000$ in a new machine. The machine will generate cash flow of $$15,000$ per year for each year of its nine$-$year life and will have a salvage value of $$7,000$ at the end of its life. The company's cost of capital is $10\%.$ Table $6-4$ and Table $6-5.$

Note: Use appropriate factor$($s$)$ from the tables provided. Round the PV factors to $4$ decimals.

Required:

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

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