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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 $137,320, 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 12B-1 and Exhibit 128-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the machine's internal rate of return? (Round your answer to whole decimal place i.e. 0.123 should be considered as 12 %.) 2. Using a discount rate of 14%, what is the machine's net present value? 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $38,090 per year. Under these conditions, what is the internal rate f return? (Round your answer to whole decimal place i.e. 0.123 should be considered as 12 %.) Internal rate of 1 return % 2. Net present value Internal rate of 3. return % The management of Revco Products is exploring four different investment opportunities. Information on the four projects under study follows: Project Number 2. 3 4 Investment $(450,000) $(540,000) $ (390,000) $(340,000) required Present value of cash inflows at a 88 discount 549,775 rate 715,947 416,102 26,102 399,353 Net present value $ 99,775 $175,947 S 59,353 Life of the project Internal rate of 6 years 12 years 6 years 3 years 158 14% 10% return 178 Because the company's required rate of return is 8% , a 8% discount rate has been used in the present value computations above. Limited funds are available for investment, so the company can't accept all of the available projects. Required: 1. Compute the project profitability index for each investment project. 2. Rank the four projects according to preference, in terms of net present value, project profitability index and internal rate of return. Complete this question by entering your answers in the tabs below. Required Required 1 2 Compute the project profitability index for each investment project. (Round your answers to 2 decimal places.) Profitabilit Project Index 1 2 3 4 Required 1 Required 2