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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 $151,410, 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 $151,410, including freight and installation. Henrie's has estimated that the new machine would increase the company's cash inflows, net of expenses, by $42,000 per year. The machine would have a five-year useful life and no salvage value Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using table Required 1. Compute the machine's internal rate of return to the nearest whole percent. Internal Rate of Return Choose Numerator: Choose Denominator:- Factor Number of Years Internal Rate of Return Factor 2, Compute the machine's net present value. Use a discount rate of 12%. (Any cash outflows should be indicated by a minus sign. Round discount factor(s) to 3 decimal places.) Now 1 2 4 5 Purchase of machine Annual cash inflows Total cash flows Discount factor (12%) Present value Net present value

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