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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 $170,595, 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 $170,595, including freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $45,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 128-1 and Exhiolt 128-2, 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 percentoge, L.e. 0.123 should be consldered as 12% ) 2. Using a discount rate of 10%, 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 $40,500 per year. Under these conditions, what is the internal rate of return? (Round your answer to the nearest whole percentoge, l.e. 0.123 should be considered os 12\%)

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