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Henrie's Drapery Service is investigating the puichase of a new machine for cleaning and blocking drapes, The machine would cost $122,570, including freight and installation.

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Henrie's Drapery Service is investigating the puichase of a new machine for cleaning and blocking drapes, The machine would cost $122,570, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $34,000 per year. The machine would have a five year useful life and no salvage value Click here to vew Exhibin 148-1 and Exhib-t148-2, to determine the appropriate discount factor(s) using table: Required: 1. What is the machine's internat rate of return? (Round your onswer to the nearest whole percentoge, i.e. 0.123 should be considered os 12\%) 2. Using a discount rate of 12%, 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 $32,330 per year Under these conditions, what is the internal rate of return? (Round your answer to the neorest whole percentoge, i.e. 0.123 should be considered os 12% )

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