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Henrie's Drapery Service is Investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $151,640, Including freight and Installation.

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Henrie's Drapery Service is Investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $151,640, Including freight and Installation. Henrie's estimated the new machine would Increase the company's cash Inflows, net of expenses, by $40,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 148-1 and Exhibit 148-2, to determine the appropriate discount factor(s) using table. Required: 1. What Is the machine's Internal rate of return? Note: Round your answer to the nearest whole percentage, L.e. 0.123 should be considered as 12%. 2. Using a discount rate of 10%, what is the machine's net present value? Interpret your results. 3. Suppose the new machine would increase the company's annual cash Inflows, net of expenses, by only $35,030 per year. Under these conditions, what is the Internal rate of return? Note: Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%. 1. Internal rate of return % 2. Net present value 3. Internal rate of return %

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