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% mect Assignment: Budgeting and Project Analysis i Saved es Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking

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mect Assignment: Budgeting and Project Analysis i Saved es Henrie's Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cos $113,730, including freight and installation. Henrie'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 Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using table. Required: 1. What is the machine's internal rate of return? Note: Round your answer to the nearest whole percentage, i.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. Unde these conditions, what is the internal rate of return? Note: Round your answer to the nearest whole percentage, i.e. 0.123 should be considered as 12%. 1. Internal rate of return 2. Net present value % 3. Internal rate of return %

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