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Week 8: Homework i Saved 5 Henrie's Drapery Service Is Investigating the purchase of a new machine for cleaning and blocking drapes. The machine would

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Week 8: Homework i Saved 5 Henrie's Drapery Service Is Investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $102,990, 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. 10 points Click here to view Exhibit 128-1 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 answer to the nearest whole percentage, l.e. 0.123 should be Book considered as 12%.) 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 $26,475 per year Under Ask 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%) Print 1. Internal rate of return 2. Net present value 3. Internal rate of return 5 References

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