Exercise 12-15 (Algo) Internal Rate of Return and Net Present Value [LO12-2, LO12-3] 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 frve year useful life and no salvage value. Click here to view Exhibit 128-1 and Exhibit 128.2 to determine the appropriate discount factor(s) using table Required: 1. What is the machine's internal rate of refurn? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered os 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 conditons, what is the internal rate of return? (Round your answer to the nearest whole percentoge, i.e, 0.123 should be considered os 12% ) EXHIBIT 12B-2 EXHIBI 12B-1 Present Value of $1;(1+r)n1