Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $$151,410,$ including freight and installation. Henries estimated the new machine would increase the companys cash inflows, net of expenses, by $$42,000$ per year. The machine would have a five$-$year useful life and no salvage value.

  

Required:

$1.$ What is the machines internal rate of return? $($Round your answer to the nearest whole percentage, i$.$e$.0\mathrm{.}123$ should be considered as $12\%.)$

$2.$ Using a discount rate of $12\%,$ what is the machines net present value? Interpret your results.

$3.$ Suppose the new machine would increase the companys annual cash inflows, net of expenses, by only $$36,930$ per year. Under these conditions, what is the internal rate of return?