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please show work! Hennle's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $113,730, including
please show work!
Hennle's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $113,730, including freight and installation. Henne's estimated the new machine would increase the company's cash inflows, net of expenses, by $30,000 per year. The machine would have a five-year useful life and no salvage value Click here to view and Exhibit 148-2, to determine the appropriate 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 10%, 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 $27,000 per year Under these conditions, what is the internal rate of return? (Round your onswer to the nearest whole percentage, l.e. 0.123 should be considered os 12%.) EXHIBIT 148-1 Preseat Valne of 51:(1+r)n1 r11(1+x)n1 Step by Step Solution
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