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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 $105.510, including freight and installation.

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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 $105.510, 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 78-1 and Exhibit 76-2, 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, l.e. 0.123 should be considered as 12%. 2. Using a discount rate of 13%, 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 $25.735 per year. Under these conditions, what is the internal rate of return? Note: Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12% 1. Internal rate of return 2. Net present value 3. Internal rate of return

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