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 14B-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? (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? (Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%.) 1 % 2 Internal rate of return Net present value Internal rate of return 3 % DOHIBIT 14341 Present Value of $t: Periods 1 2 3 5 6 2 8 9 0677 10 11 0130 2 3 14 15 5 6 76 8% 99 10% 11 12 14 15% 10% 17 15 20% 21 225 23 24 25 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.901 0.893 0.885 0.877 0.870 0.362 0.855 0.847 0.840 0.833 0.326 0.820 0813 0.806 0.800 0.925 0907 0.890 0.873 0.857 0.842 0.826 0.812 0797 0.783 0.709 0.756 0743 0.731 0.718 0706 0694 0683 0672 0661 0 650 0640 0.389 0.364 0.840 0.816 0.794 0712 0.751 0.731 0712 0.693 0.675 0.658 0641 0.624 0.6090593 0579 05640551 0.537 0.524 0.512 0.855 0.823 0.792 0.769 0.735 0708 0.683 0.659 0.636 0.613 0.592 0572 0.552 0534 0516 0.499 0482 0.467 0.451 0.437 0.423 0.410 0.922 0784 0747 0.713 0.691 0.650 0.621 0.593 0.567 0.543 0.519 0.497 0.478 0.456 0.437 0.419 0.402 02386 0.370 0.355 0.341 0.328 0.790 0746 0705 0.666 0.630 0.596 0.564 0.535 0507 0.480 0.456 0432 0410 0.390 0.370 0.352 0.335 0.319 0303 0.299 0275 0.262 0.750 0.711 0.665 0.623 0583 0.547 0.50 0.482 0.452 0.425 0.400 0376 0.354 0.333 0.314 0.296 0279 0.263 0249 0235 0.222 0210 0.731 0.627 0.582 0540 0.502 0.467 0.434 0.404 0376 0.351 0.327 0.305 0295 0266 0249 0230 0.218 0204 0.191 0.179 0168 0.703 0.64505920544 0.500 0.460 0.4240391 0.361 0.333 0.308 0.284 0263 0.243 0225 0209 0.194 0.180 0.167 0.155 0.144 014 0.676 0.614 0.558 0508 0463 0422 0.386 0.352 0.322 0.295 0.270 0.247 0227 0.208 0.191 0.176 0162 0.149 0.137 0.126 0.110 0107 0.650 0.585 0.527 0.475 0.429 0.338 0,350 0.317 0.287 0.261 0237 0215 0.195 0.178 0.162 0148 0135 0123 0 112 0.103 0.094 0088 0.625 0.557 0.497 0.444 0.397 0356 0319 0.286 0257 0231 0.208 0.157 0.168 0.152 0.137 0.124 0.112 0.102 0.092 0083 0.075 0.069 0.601 0.530 0.469 0.45 0.368 0.326 0.290 0.258 0.229 0.204 0.182 0.163 0.145 0.116 0.104 0.093 0.084 0.075 0.068 0.061 0.055 0577 0.505 0.442 0.388 0340 0.299 0.263 0.232 0.205 0.181 0.160 0.141 0.125 0.111 0.099 0.089 0.078 0.069 0002 0.055 0.049 0.044 05550481 0.417 0.362 0.315 0.275 0.2390209 0.183 0.160 0.140 0.123 0.109 0.095 0.084 0.074 0.065 0.057 0.051 0045 0040 0.035 0.534 0458 0394 0.3390292 0.252 0.218 0.188 0.163 0.141 0122 0.107 0.093 0.081 0.071 0.062 0.054 0.047 0.042 0.0360032 0.028 0.53 0.436 0371 0317 02270 0.231 0.198 0.170 0146 0.125 0.108 0.093 0.000 0.069 0.060 0,052 0.045 0039 0.034 0.030 0.026 0.023 0.494 0.416 0.350 0.296 0.250 0.212 0.180 0.153 0130 0.111 0.095 0.081 0.069 0.059 0.051 0.044 0.038 0.032 0.028 0024 0.021 0.019 0.475 0.396 0.331 0.277 0.232 0.194 0.164 0.138 0.116 0.098 0.083 0.070 0.060 0051 0.043 0.037 0031 0027 0.02300200017 0.014 0.456 0377 0.312 0.258 0215 0.178 0.149 0.124 0.104 0.087 0.073 0.061 0051 0.043 0.037 0.031 0.026 0022 0.019 0.015 0014 0.012 0.439 0.359 0.294 0242 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 0018 0.015 0.013 0.011 0.009 0422 0.342 0.278 0.226 0.184 0.123 0.101 0.083 0.068 0.056 0.046 0.038 0.032 0.025 0.022 0.018 0.015 0.03 0.011 0 009 0007 0.406 0326 0.262 0211 0.170 01138 0.112 0,091 0.074 0060 0.049 0.040 0.033 0027 0.022 0.018 0015 0.012 0.010 0.009 0.007 0.006 0.390 0.310 0.247 0.197 0158 0.126 0.102 0.082 0.066 0.053 0.043 0.035 0.028 0.023 0.019 0,015 0,03 0010 0.008 0.007 0006 0.005 0.375 0.295 0.233 0.184 0146 0.116 0.092 0.074 0.059 0047 0.029 0.030 0.024 0.0200.0160.013 0010 0.009 0.007 0.006 0005 0.004 0.361 0 281 0.220 0.172 0.135 0.106 0.084 0.066 0,053 0.042 0.033 0.026 0.021 0.017 0.014 0.011 0.009 0.007 0.000 0.005 0.004 0.003 0.347 0.268 0207 0.151 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 0.333 0.255 0.198 0.150 0.116 0.090 0.069 0.054 0.042 0.033 0.020 0.020 0.016 0.012 0.010 0003 0.006 0.005 0.004 0.003 0.002 0.002 0.321 0243 0185 0.141 0107 0.082 0.063 0.048 0.037 0.029 0.022 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 0131 0.099 0.075 0.057 0.044 0.033 0.025 0.020 0.015 0.012 0.0090.007 0.005 0.004 0.003 0.003 0.002 0.002 0.001 0208 0142 0.097 0.067 0.046 0.032 0.022 0.015 0.011 0.008 0.005 0.004 0.003 0.002 0.001 0.001 0.001 0.000 0.000 0.000 0.000 0.000 16 17 18 19 20 0.150 21 22 23 24 25 20 27 20 29 30 0.012 40 BOHIBIT 143-2 Pretant Value of an Annulty of $1 in Arrears, + [1 23 3.102 Pero 45 555 65 575 95 10 15 12 3 145 165 17 20 205 225 20 1 0962 0.952 0.943 0.935 0926 0917 0.9090901 0.893 0.893 0.885 0.877 0.870 0.862 0.855 0.347 0.840 0.833 0826 0820 0.813 0826 0820 0.53 30S 0300 2 1886 1859 1833 1808 1785 1759 1736 1713 1690 1668 1647 1626 1605 1595 2566 2547 1528 1509 1492 1474 1474 1457 1457 1460 3 2775 22723 2673 2.624 2577 2531 2487 2444 2402 2361 2322 2283 2245 2246 2210 2174 2140 2106 2074 2042 2011 1981 1952 4 3.630 3.545 3.465 3387 3.312 3.240 3170 3.037 2.974 2914 2855 2798 2743 2690 2639 25892540 2494 2448 2404 2352 5 4.452 4329 4.212 4.100 3993 3.890 3.791 3.696 3.605 3.517 3.433 3.352 3.352 3274 3199 3127 3.058 2991 2926 2864 2803 2745 2009 6 50242 5.076 4 917 4767 4.623 4.486 4.355 4.231 4 11 3.998 3.889 3784 3.695 3.599 3.498 3.410 3326 3245 3.157 3092 3020 2951 7 6.002 5786 5.582 5.389 5.206 5.035 4.868 4712 4.564 4.423 4.288 4.160 4.039 3922 3.812 3706 3.605 3.508 3.415 3327 3242 3161 8 6.733 6.463 6.210 5.971 52747 5.535 5.335 5.146 4.968 4799 4.639 4.487 4344 41207 4,078 3954 3.837 3.726 3619 3.518 3421 31329 9 7.435 7108 6.802 6.515 6.247 5.995 5.759 5.507 51328 5.132 4.946 4772 4.607 4.451 4313 4153 4031 3.905 3.786 3673 3566 3463 10 8.111 7360 7024 6.710 6.418 6.145 5 889 5650 5.650 5.426 5.216 5.019 4.833 4659 4.494 4339 4.192 4.054 3.923 3.799 3682 3571 8760 8.306 7.387 7499 7139 6.805 6.495 6.207 5.938 5.687 5.453 5 234 5.029 4836 4.656 4496 4327 417 4035 3902 3776 3656 12 9335 8.863 8.384 7943 7536 7161 6.814 6.492 6.194 5.918 5.660 5421 5.197 4.988 4.79 4.611 4.409 4278 42 3.995 3851 3725 3 9.986 9394 8.853 8.358 7904 7487 7103 6.750 6.424 6.122 5.842 5.583 5.342 5.118 4910 4715 4.583 4362 4203 4.053 3912 3730 14 10.563 9.899 9295 8.745 8.244 7786 7367 6.982 6.628 6.302 6.002 5724 5.468 5229 5008 4802 4.671 4432 4.265 4108 3962 3.824 15 11:118 10.300 9.712 9.108 8.559 8.061 7.606 7191 6.811 6.462 6.142 5.847 5575 5324 5.092 4.876 4.675 4499 4675 4315 4153 4.001 3559 15 11652 10.838 10.106 9.447 8.851 8.313 7.824 7379 6.974 6.604 6.265 5.954 5.668 5.405 5162 4938 4730 4.536 4357 4189 4 033 33 7 12.166 14274 10.477 9.763 9.122 2544 8.022 7549 720 6.729 6.373 6.047 5749 5.475 5.222 4990 4775 4576 4391 4219 4059 3910 18 1265911.690 10.828 10.0599372 8.756 8.201 2702 7250 6.840 6.467 6128 5.813 5.534 5.273 5033 4.812 4.608 4419 424340503928 19 3134 12085 TL158 10.336 9.604 8.950 8.365 7839 7366 6.938 6.550 6.198 5.877 5.584 5316 5.070 4.843 4.635 4.442 4263 4097 3942 20 3.590 12.462 11470 10.594 9.818 9.129 8.514 7.469 7025 6.622 6.259 5.929 5.628 5353 5101 4 970 4.657 4460 4279 4110 3954 21 14.029 1282111764 10.836 10.017 9.292 8.649 8.075 7562 2102 6.687 6.312 5.973 5.665 5384 5127 4.891 4.675 4.475 4.292 4.121 3953 22 14451 3.163 12.042 11061 10.201 9.442 8372 8.776 7645 7.170 6.743 6.359 6.011 5.696 5410 5149 4.909 4690 4438 4302 4030 3970 22 14.857 13.48912303 11.272 10.371 9.580 8.883 8.266 7718 7230 6.792 6.792 6.399 6.044 5723 6.044 5.723 5.432 5.167 4925 4703 4499 4311 ET 3.975 15 247 13.799 12 550 11469 10.529 9.707 8.985 8348 7784 7283 6.835 6.434 6.073 5746 5.451 4937 4507 4313 413 3.981 25 15.622 14.094 12783 11654 10.675 9.823 9.077 8.422 7.843 7330 6.873 6.464 6.097 5.766 5.766 5.467 5195 4949 4721 4514 4.323 4147 3955 15.983 14.375 73.003 11826 10 810 9.929 9.151 8.488 7896 7372 6.906 6.491 6.118 5.783 5.480 5.206 5.480 5206 4956 4728 4520 4373 4151 3.550 16.330 14.643 13:211 11.987 10 935 10.027 9.237 8.548 7943 7.409 6.935 6.514 6.136 5.798 5.492 5.215 4964 4734 4524 454 3.990 2 16.663 14.898 3.406 1237 11.051 10.116 9.307 8.602 7984 7.441 6.961 6.534 6.152 5.810 5.502 5.223 4970 47394528 4355 3992 29 16.984 15.141 3.591 12.278 12158 10.198 9.370 8.650 8022 7470 6.983 6.551 6.166 5820 5.510 5229 4975 1743 4.531 4350 49 3.994 17292 15372 13765 12.409 11.258 10.274 9.4278.694 8.055 7.496 7003 6.566 6.177 5.829 5577 5 225 4979 4745 4534 4329 4150 3905 19793 17159 15.046 13.332 11925 10.757 9.779 8951 8.244 7.634 7105 6.642 6.223 5.871 5.549 5.258 4997 4760 4544 4.544 4347 399 7963 5182 NSS 883