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Henrie drapery service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost 126,175 including freight and installation.

Henrie drapery service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost 126,175 including freight and installation. Henrie estimated the new machine would increase the company cash inflow net of expenses by 35000 per year. The machine would have a five year useful life and salvage value. 1. What is the machine internal rate of return? 2 using a discount rate of 12% what is the machine net present value? Interpret your results. 3 suppose the new machine would increase the company annual cash inflow net of expenses by only 32435 per year under these conditions what is the internal rate of return

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