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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 $137,320. 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 \$137,320. including freight and installation. Hentie's estimated the new machine would increase the company's cash inflows, net of expenses, by $40,000 per year. The machine would have a five.year useful life and no salvage value. Click here to view Exhibit 148 -1 and Exhibit 148-2, to determine the appropriate discount factor(5) using table Required: 1. What is the machine's internal rate of return? (Round your answer to the neorest whole percentoge, Le, 0.123 should be considered os 12% 2. Using a discount rate of 14%, what is the machine's net present value? Interptet your results 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $37,150 per year. Under these conditions, what is the internal rate of refum? (Round your answer to the nearest whole percentage, i.e. 0.123 should be considered os 12% ) Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost \$137,320. including freight and installation. Hentie's estimated the new machine would increase the company's cash inflows, net of expenses, by $40,000 per year. The machine would have a five.year useful life and no salvage value. Click here to view Exhibit 148 -1 and Exhibit 148-2, to determine the appropriate discount factor(5) using table Required: 1. What is the machine's internal rate of return? (Round your answer to the neorest whole percentoge, Le, 0.123 should be considered os 12% 2. Using a discount rate of 14%, what is the machine's net present value? Interptet your results 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $37,150 per year. Under these conditions, what is the internal rate of refum? (Round your answer to the nearest whole percentage, i.e. 0.123 should be considered os 12% )

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