Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer the whole question in full and show all your work to get full credit. Check my work Exercise 12-15 Internal Rate of Return

please answer the whole question in full and show all your work to get full credit. image text in transcribed
Check my work Exercise 12-15 Internal Rate of Return and Net Present Value (L012-2, L012-3] Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $171,650, including freight and installation. Henrie's estimated the new ding freight and installation. Henrie's estimated the new machine would increase the company's cash inflows, net of expenses, by $50,000 per year. The machine would have a five-year useful life and no salvage value. Click here to view Exhibit 12B-1 and Exhibit 12B-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? 3. Suppose the new machine would increase the company's annual cash inflows, net of expenses, by only $44,130 per year. Under these conditions, what is the internal rate of return? (Round your final answer to the nearest whole percentage.) 1. Internal rate of return 2. Net present value 3. Internal rate of return Prev 1 of 2 !!! Next >

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

What is the best conclusion for Xbar Chart? UCL A X B C B A LCL

Answered: 1 week ago