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Al- Kut's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $130,400, including freight and

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Al- Kut's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $130,400, including freight and installation. Al- Kut's has estimated that the new machine would increase the company's cash inflows, net of expenses, by $25,000 per year. The machine would have a 10-year .useful life and no salvage value Suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $22,500 per year. Under these conditions, compute the internal rate of return to the nearest whole percent 13% 9% 10% 12% O 11% O What are the machine's net present .value? Use a discount rate of 14% $5,000 O $20.000 O $2,000 O $0 O ($20,000) O What are the machine's internal rate of ?return to the nearest whole percent 14% O 8% 12% O 10% O 16% O

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