Question
Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $122,570, including freight and installation.
Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $122,570, including freight and installation. Henries has estimated that the new machine would increase the companys cash inflows, net of expenses, by $34,000 per year. The machine would have a five-year useful life and no salvage value. Required: 1. Enter the Excel formula inputs and compute the machines internal rate of return. 2. Suppose that the new machine would increase the companys annual cash inflows, net of expenses, by only $31,505 per year, instead of $34,000 per year. Enter the Excel formula inputs and compute the machines internal rate of return.
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