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3 Henries Drapery Service is livestigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102.990, including freight and

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3 Henries Drapery Service is livestigating 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. Click here to view Exhibit 138-1 and Ext. FB2 to determine the appropriate discount factorin) using table. Required: 1. What is the machine's internal rate of return? (Round your answer to whole decimal place le 0123 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 flows, net of expenses by only $26.475 per year. Under These conditions, what is the internal rate of return? (Round your answer to whole decimal place le 0123 should be considered as 12%) 015 1 Internal rate of return 2. Net presente 2 teoretum 99

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