Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $122,570, including freight and installation. Henries has estimated that the new machine would increase the companys 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 view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table.

Required:

1.	Compute the machines internal rate of return to the nearest whole percent.

2.	Compute the machines net present value. Use a discount rate of 12%. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.)
3.	Suppose that the new machine would increase the companys annual cash inflows, net of expenses, by only $31,505 per year. Under these conditions, the internal rate of return to the nearest whole percent.