Exerclse $12-15($Algo$)$ Internal Rate of Return and Net Present Value $[$LO$12-2,$ LO$12-3]$

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\mathrm{.}000$ per year. The machine would have a five$-$year useful life and no salvage value.

Click here to view Exhibit $128-1$ and Exhibit $12$B$-2,$ to determine the appropriate discount factor$($s$)$ using table.

Required:

What is the machine's internal rate of return? $($Round your onswer to the neorest whole percentoge, l$.$e$.0\mathrm{.}123$ should be consiciered as $12\%.)$

$2$ Using a discount rate of $14\%,$ what is the machine's net present value? Interpret your results.

Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $$34,390$ per year. Under these conditions, what is the internal rate of return? $($Round your onswer to the neorest whole percentoge, l$.$e$.0\mathrm{.}123$ should be considered os $12\%.)$

$\backslash$table$[[1.$ Internal rate of return,$\%$