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Henrie's Drapery Service is investigating the purchase ofa new machine for cleaning and blocking drapes. The machine would cost $137,280, including freight and installation. Henrie's

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Henrie's Drapery Service is investigating the purchase ofa new machine for cleaning and blocking drapes. The machine would cost $137,280, including freight and installation. Henrie's has estimated that the new machine would increase the company's cash inflows, net of expenses, by $40,000 per year. The machine would have a fiveyear useful life and no salvage value. (Hint. Use Microsoft Excel to calculate the discount factor(s).) Required: 1. Compute the machine's internal rate of return. (Do not round intermediate calculations and round your final answer to nearest whole number.) \"to 2. Compute the machine's net present value. Use a discount rate of 14%. (Do not round intermediate calculations and round your final answers to the nearest dollar amount.) 3. Suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $37,150 per year. Under these conditions, compute the internal rate of return to the nearest whole percent. (Do not round intermediate calculations and round your final answer to nearest whole number.) -n%

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