1 Exercise 13-15 Internal Rate of Return and Net Present Value (LO13-2, LO13-3] 2.14 points Henrle's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102.990, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $30,000 per year. The machine would have a five-year useful life and no salvage value. Skipped Click here to view Exhibit 138-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table. eBook Print 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? Interpret your results. 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $24,450 per year. Under these conditions, what is the internal rate of return? (Round your answer to whole decimal place i.e. 0.123 should be considered as 12%.) References 1. Internal rate of return 2. Net present value 3. Intemal rate of return %