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Henrie's Drapery Service is investigating the purchase ofa new machine for cleaning and blocking drapes. The machine would cost $151,640, 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 $151,640, including freight and installation. Henrie'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 fiveyear useful life and no salvage value. Click here to view Exhibit 1281 and Exhibit 1282, to determine the appropriate discount factor{sjl using table. Required: 1. What is the machine's internal rate of return? [Round your nal answer to the nearest whole percentage.) 2. Using a discount rate of 10%, what is the machine's net present value? 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $36,000 per year. Under these conditions, what is the internal rate of return? {Round your final answer to the nearest whole percentage} -EI -I -EI

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