Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102,990, including freight and installation. Henrie's estimated 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 148-1 and Exhibit 14B-2. to determine the appropriate discount factor(s) using table Required: 1. What is the machine's internal rate of return? Note: Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%. 2. Using a discount rate of 14%, 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 $25,790 per year. Under these conditions, what is the internal rate of return? Note: Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%. Answer is complete but not entirely correct. 1. Internal rate of return 2. Net present valuo 3. Internal rate of return- 14% 00 11% EXHIBIT 148-1 Present Value of 51, (1+r) Periods 4% 1 5% 0.962 0.952 2 3 4 5 6 7 8 0.731 0.677 0.627 9. 10 11 0.287 0.261 12 13 14 0.577 0.505 15 16 17 18 19 20 0.456 0.377 0312 21 0.439 0359 0.294 22 0422 0.342 0.278 23 24 25 26 29 30 40 0208 0142 0.097 6% 7% 8% 9% 10% 11% 12% 13% 14% 15% 16% 17% 18% 19% 20% 21% 22% 23% 24% 25% 0.943 0.935 0.926 0.917 0909 0.901 0.893 0.885 0.877 0.870 0.862 0.855 0.847 0.840 0.833 0.826 0.820 0.813 0.806 0.800 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.812 0.797 0.783 0.769 0.756 0.743 0.731 0.718 0.706 0.694 0.683 0.672 0.661 0.650 0.640 0.889 0.864 0.840 0.816 0.794 0.772 0.751 0.731 0.712 0.693 0.675 0.658 0.641 0.624 0.609 0.593 0.579 0.564 0.551 0.537 0.524 0.512 0.855 0.823 0.792 0.763 0.735 0.708 0.683 0.659 0.636 0.613 0.592 0.572 0.552 0.534 0.516 0.499 0.482 0.467 0.451 0.437 0.423 0410 0.822 0.784 0.747 0.713 0.681 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.476 0.456 0.437 0.419 0.402 0.386 0.370 0.355 0.341 0.328 0.790 0.746 0.705 0.666 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 0.410 0.390 0.370 0.352 0.335 0.319 0.303 0.289 0.275 0.262 0.760 0.711 0.665 0.623 0.583 0.547 0.513 0.482 0.452 0425 0.400 0.376 0.354 0.333 0.314 0.296 0.279 0.263 0.249 0.235 0.222 0.210 0.582 0.540 0.50 0.467 0.434 0.404 0376 0.351 0.327 0.305 0.285 0.266 0.249 0.233 0.218 0.204 0.191 0.179 0.168 0.703 0.645 0.592 0.544 0.500 0.460 0.424 0.391 0.361 0.333 0.308 0.284 0.263 0.243 0.225 0.209 0.194 0.180 0.167 0.155 0.144 0.134 0.676 0.614 0.558 0.508 0.463 0.422 0.386 0.352 0.322 0.295 0.270 0.247 0.227 0.208 0.191 0.176 0.162 0.149 0.137 0.126 0:116 0.107 0.650 0.585 0.527 0.475 0.429 0.388 0,350 0.317 0.237 0.215 0.195 0.178 0.162 0.148 0.135 0.123 0.112 0.103 0.094 0.086 0.625 0.557 0.497 0.444 0.397 0.356 0.319 0.286 0.257 0.231 0.208 0.187 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0.083 0.076 0.069 0.601 0.530 0469 0.415 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.130 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0.442 0.388 0.340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.088 0.078 0.069 0.062 0.055 0.049 0.044 0.555 0.481 0417 0.362 0.315 0.275 0.239 0.209 0.183 0.160 0.140 0.123 0.108 0.095 0.084 0.074 0.065 0.057 0.051 0.045 0.040 0.035 0534 0.458 0.394 0.339 0.292 0.252 0.218 0.188 0.163 0.141 0.123 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.036 0.032 0.028 0.513 0.436 0.371 0317 0.270 0.231 0.198 0.170 0.146 0.125 0.108 0.093 0.080 0.069 0.060 0.052 0.045 0.039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0.130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0.024 0.021 0.018 0475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0.051 0.043 0.037 0.031 0.027 0.023 0.020 0.017 0.014 0.258 0.215 0.178 0149 0.124 0.104 0.087 0.073 0.061 0.051 0.043 0.037 0.031 0.026 0.022 0.019 0.016 0.014 0.012 0.242 0.199 0.164 0.135 0.112 0.093 0.077 0.064 0.053 0,044 0.037 0.031 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.226 0.184 0.150 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.026 0.022 0.018 0.015 0.013 0.011 0.009 0.007 0406 0.326 0.262 0.211 0.170 0.138 0.112 0.091 0.074 0.060 0.049 0.040 0.033 0.027 0.022 0.018 0.015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0.158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0.015 0.013) 0.010 0.008 0.007 0.006 0.005 0.375 0.295 0213 0.184 0.146 0.116 0.092 0.074 0.059 0.047 0.038 0.030 0.024 0.020 0.016 0.013 0.010 0.009 0.007 0.006 0.361 0.281 0.220 0.172 0.135 0.106 0.054 0.066 0.053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.006 0.005 27 0.347 0.268 0.207 0.161 0.125 0.098 0.076 0.060 0.047 0.037 0.029 0.023 0.018 0.014 0.011 0.009 0.007 0.006 0.005 0.004 0.003 0.002 28 0.333 0.255 0.196 0150 0.116 0.090 0.069 0.054 0.042 0.033 0.026 0.020 0.016 0.012 0.010 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.321 0.243 0.185 0.141 0.107 0.082 0.063 0.048 0.037 0.029 0.022 0.017 0.014 0.011 0.008 0.006 0.005 0.004 0.003 0.002 0.002 0.002 0.308 0.231 0.174 0.131 0.099 0.075 0.057 0.044 0.033 0.026 0.020 0.015 0.012 0.009 0.007 0.002 0.002 0.001 0.067 0.046 0.032 0022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.000 0.000 0.000 0.005 0.004 0.004 0.003 0.005 0.004 0.003 0.003 0.001 0.001 0.000 0.000 EXHIBIT 148-2 Present Value of an Annuity of 51 in Arrears; Periods 4%6 5% 6% 1 0.962 0.952 0.943 2 1856 1859 3 2.775 4 7% 0.935 1833 1805 2.723 2673 2.624 2.577 2531 2487 2444 3.630 3.546 3465 3.387 8% 0.926 1.763 9% 10% 11% 0.917 0.909 0901 1.759 1.736 1.713 S 6 7 6.002 5.076 4.917 5.786 5.582 4.355 4.868 8 6.733 6.463 6210 9 5.971 5.747 5.535 7.435 7.105 6.802 6.515 6.247 5.335 10 8.111 11 12 13 14 10.563 9.899 9.295 8.745 8.244 15 11.118 10.380 9,712 9.108 8.559 8.061 7.606 2.191 6462 16 17 18 11652 10.838 10.106 944751 12.166 11.274 10.477 9.763 9.122 12.659 11 690 10 828 10.059 9.372 8.313 7824 7379 6.604 6.265 5954 19 20 21 22 23 24 25 8.544 8022 7.549 756 201 13.134 12.085 11.158 10.336 9.604 8.950 8.365 7,839 13.590 12.462 11.470 10.594 9.815 9.129 8.514 14.029 12.821 11.764 10.836 10017 9.292 8.649 14.451 13.163 12.042 11.061 10.201 9.442 8.772 14.857 13.489 12.305 11.272 10.371 9.580 8883 15.247 13.799 12.350 11.469 10.529 9.7078.985 15.622 14.094 12.783 11.654 10675 9.823 7120 6.729 7.702 7.963 26 15.953 14.375 13.005 11826 10.810 27 28 29 30 40 9.929 9.161 16.330 14.643 13.211 11.987 10 935 10 027 9.237 16.665 14.898 13:406 12.137 11.051 10.116 9.307 16.984 15.141 13.591 12.278 11.158 10.198 9370 17:292 15.372 13.765 12.409 11.258 10.274 9.427 19.793 17.159 15.046 13.332 1923 10.757 9.779 20% 13% 14% 12% 15% 17% 16% 18% 19% 0.89) 0.885 0877 0.870 0.862 0.855 0847 0.840 0.833 1690 1.668 1647 1626 1.605 1.585 1.566 1547 1.328 2.322 2.283 2.246 2210 2.174 2.140 2.106 2.402 2361 3.102 3312 3.240 3.170 3.037 2.974 2.914 2855 2448 2.404 2.798 2.639 2589 2.743 2.690 4.452 4.329 4.212 4.100 3.993 3.890 3.791 2.803 2.745 2.689 3.696 3.605 3.517 3.433 3.352 3.274 3.199 3.127 3.058 2.991 5.242 4.767 4623 4.486 3.092 3.020 2951 4.111 3.998 4231 3.498 3889 3.784 3.685 3.589 3410 3326 5013 4.712 3.161 3.327 3242 4.039 5.389 5.206 4.564 4.423 4288 4.160 3.922 3.812 3.706 3.605 5.146 4.968 4.799 4639 4.487 4.344 4.207 4.078 3.954 3.837 3.518 3421 3.329 4451 5.328 5.132 4.946 4.772 4.607 3.673 5.995 4.303 5.759 5.537 4.163 4,031 3.566 3.463 7.722 7.360 7.024 6.710 6418 6.145 5.889 5.650 5.426 5.216 5,019 4.833 4.659 4.494 4339 4.192 4.054 3.923 3.799 3682 3571 8.760 8.306 7.887 7.499 7.139 6.805 6495 6.207 5.938 5687 5453 5.234 5.029 4836 4.656 4.486 4.327 4.177 4.035 3.902 3.776 3.656 4.793 9385 4.439 6814 6.492 6.194 8.863 8.384 5.918 5.660 5.421 3.985 3.851 3.725 4.127 7.943 7536 7.161 4.611 4.201 9.956 9.394 8.853 6.750 6424 6.122 4.053 358 7.904 7487 5.342 7.103 3.780 4.715 4.533 5.842 5.583 6.002 5.724 5465 5.229 5.00% 7.786 7.367 | 6.982 6.628 6302 4.265 4.108 3.962 3824 6811 6142 5847 5.575 5.324 5.092 4.876 6974 5.668 5.405 5.162 4.938 5.749 5.475 5.222 4.990 6.373 6.047 6467 6.128 5.818 5.534 7250 6.840 5.273 5.033 4243 5.877 6.550 6.198 7.366 6.938 5.584 5316 5.070 4.843 4.635 4442 4.263 4,097 3.942 6.623 6.259 5.929 5.628 5.353 5.101 4.870 4.657 4460 4279 4.110 3.954 7469 7.025 8.075 7.562 6.687 6.312 7.102 5.975 5.665 4891 4292 5.384 5.127 4.675 4476 4.121 3963 7.170 6.743 6.359 6011 5.696 5.410 5.149 4.909 4.690 4.488 4.302 4.130 3.970 8.176 7.645 4.925 4.703 4.499 4.311 4.137 3.976 8.266 7.718 7.230 6.792 6.399 6.044 5.723 5.432 5.167 4713 4.307 8.348 7.784 7.283 6.835 6434 6.073 5.746 5.451 5.182 4937 4.318 4.143 3.981 5.195 9.077 8422 7.843 7330 6.873 6464 6097 5.766 5.467 4.948 4.721 4514 4.323 4.147 3.985 8.488 7.896 7372 5.480 6.906 6491 6118 5.783 5.206 4,956 4.728 4.520 4328 4151 3988 7.943 7409 4.964 6935 6514 6.136 5.798 5.492 5215 4.734 4524 4.332 548 4154 3990 6.961 6.534 6.152 5.810 5.502 5.223 4.970 4.739 4.528 4.335 4157 3992 8.602 7.984 7441 8.650 8.022 7.470 6.983 6.551 6.166 5820 5.510 5.229 4.975 4.743 4.531 4.337 4159 1.994 7,496 7.003 6.566 6.177 5.829 5.517 5.235 4979 4.746 4.534 4.339 4.160 3.995 694 8055 951 8.244 7.634 7.105 6.642 6.213 5.871 5.54% 5.258 4.997 4.760 4.544 4.347 4.166 3.999 23% 22% 21% 0306 0.800 0826 0.820 0.513 1509 1.492 1.474 1457 2.074 2042 2.011 2.540 2494 24% 25% 1.440 1.981 1.952 2362 2.926 2864 3.245 3.167 3.416 3.508 3.726 3.619 3.905 3.786 197 4.988 5.118 4910 4.278 4.362 4.432 3912 4.802 4.611 4.153 4001 4.675 4.489 4.315 4.730 4.536 4.357 4.189 4.033 4.775 4576) 4.391 4219 4.059 3.910 3.859 3.887 4.812 4.608 4,080 4.419 3.928