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Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes The machine would cost $113,730, including freight and installation.
Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes The machine would cost $113,730, including freight and installation. Henrie's has estimated that the new machine would increase the company's cash inflows, net of expenses, by $30,000 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: Compute the machine's internal rate of return to the nearest whole percent. Compute the machine s net present value Use a discount rate of 10% (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Suppose that the new machine would increase the company net of expenses by only $27 000 per year Under these conditions the Internal fait of nearest whole percent
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