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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 $ 1 0 2 ,
Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $ including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $ per year. The machine would have a fiveyear useful life and no salvage value. Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using table. Required: What is the machine's internal rate of return? Round your answer to the nearest whole percentage, ie should be considered as Using a discount rate of what is the machine's net present value? Interpret your results. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $ per year. Under these conditions, what is the internal rate of return? Round your answer to the nearest whole percentage, ie should be considered as
Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes.
The machine would cost $ including freight and installation. Henrie's estimated the new machine
would increase the company's cash inflows, net of expenses, by $ per year. The machine would
have a fiveyear useful life and no salvage value.
Click here to view Exhibit B and Exhibit B to determine the appropriate discount factors using
table.
Required:
What is the machine's internal rate of return? Round your answer to the nearest whole percentage, ie
should be considered as
Using a discount rate of what is the machine's net present value? Interpret your results.
Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only
$ per year. Under these conditions, what is the internal rate of return? Round your answer to the
nearest whole percentage, ie should be considered as
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