The manager of Soft \& Creamy Ice Cream is thinking of buying a new soft ice cream machine. The machine will cost $\$ 13,500$ and will last 10 years. Soft ice cream sales are expected to generate $\$ 3,000$ in income per year.

1. Using the payback reciprocal method, approximate the internal rate of return.

2. What is the "true" internal rate of return from Table II?