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philo T due Apr 20 0 Help Save Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The

philo
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T due Apr 20 0 Help Save 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. 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 five-year useful life and no salvage value Click here to view Exhibit 138-1 and Exhibit 138-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the machine's internal rate of return? (Round your final answer to the nearest whole percentage.) 2. Using a discount rate of 14%, what is the machine's net present value? Interpret your results. 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $37150 per year. Under these conditions, what is the internal rate of return? (Round your final answer to the nearest whole percentage.) 1. 2 3. Internal rate of return Net present value Internal rate of return Prey 1 of 3 ! Next >

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