Miami Machine Shops, Ltd$.$ is considering purchasing a vertical drill machine. The machine will cost $ $62,000$ and will have an eight$-$year service life. The selling price of the machine at the end of eight years is expected to be $ $5,000$ in today's dollars. The machine will generate annual revenues of $ $22,000($today$\text{'}$s dollars$),$ but the company expects to have an annual expense $($excluding depreciation$)$ of $ $9,500($today$\text{'}$s dollars$).$ The asset is classified as a seven$-$year MACRS property. The project requires a working$-$capital investment of $ $10,000$at year $0.$ The marginal income tax rate for the firm is averaging $25\%$ The firm's market interest rate is $18\%.($a$)$ Determine the internal rate of return of this investment. $($b$)$ Assume that the firm expects a general inflation rate of $\backslash (5\backslash \%\backslash ),$ but that it also expects an $\backslash (8\backslash \%\backslash )$ annual increase in revenue and working capital and a $\backslash (6\backslash \%\backslash )$ annual increase in expense caused by inflation. Compute the real $($inflationfree$)$ internal rate of return. Is this project acceptable?