Exercise 9-12 Your answer is partially correct. Try again. Garrett Boone, Riverbed 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 $271,150 and will last for 7 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 $41,000 per year. He also believes the lathe will reduce energy costs by $24,750 per year. If he purchases the new lathe, he will be able to sell the old lathe for $5,612 Click here to view the factor table (a) Calculate the lathe's internal rate of return. Internal rate of return (b) If Riverbed Enterprises uses a 13% hurdle rate, should Garrett purchase the lathe? Yes Exercise 9-9 Larry's Lawn Service needs to purchase a new lawnmower costing $8,476 to replace an old lawnmower that cannot be repaired. The new lawnmower is expected to have a useful life of 4 years, with no salvage value at the end of that period. Click here to view the factor table (a) If Larry's required rate of return is 11%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Annual cash savings should be $ (b) If Larry's required rate of return is 14%, what level of annual cash savings must the lawnmower generate to be considered an acceptable investment under the net present value method? (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to 0 decimal place, e.g. 58,971.) Annual cash savings should be $ LINK TO VIDEO LINK TO TEXT