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PLEASE answer. I will give a good rate Exercise 14-15 (Algo) Internal Rate of Return and Net Present Value [LO14-2, LO14-3] Henrie's Drapery Service Is
PLEASE answer. I will give a good rate
Exercise 14-15 (Algo) Internal Rate of Return and Net Present Value [LO14-2, LO14-3] 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 estimated 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 llfe and no salvage value. Click here to vlew Exhiblt 14B-1 and Exhibit 14B-2, to determine the approprlate discount factor(s) using table. Required: 1. What Is the machine's Internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12\%.) 2. Using a discount rate of 12%, 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 $36,930 per year. Under these conditions, what is the Internal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.)Step by Step Solution
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