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Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking...

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Accounting

Henries Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $105,510, including freight and installation. Henries estimated the new machine would increase the companys 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:
What is the machines internal rate of return?
Note: Round your answer to the nearest whole percentage, i.e.0.123 should be considered as 12%.
Using a discount rate of 13%, what is the machines net present value? Interpret your results.
Suppose the new machine would increase the companys annual cash inflows, net of expenses, by only $25,735 per year. Under 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%.EXHIBIT 14B-1
Present Value of $1;1(1+r)n
\table[[Periods,4%,%,6%,7%,8%,9%,0%,11%,12%,13%,14%,15%,16%,17%,18%,19%,20%,21%,22%,23%,24%,25%
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