Henrie’s drapery service is investigating the purchase of a new machine for cleaning and blocking drapes. the machine would cost $151,640, including freight and installation. henrie’s estimated the new machine would increase the company’s cash inflows, net of expenses, by $40,000 per year. the machine would have a five-year useful life and no salvage value.
(a)- compute the machine's internal rate of return to the nearest whole percent.
(b)- compute the machine's net present value. use a discount rate of 10%.
(c)- suppose that the new machine would increase the company's annual cash inflows, net of expenses, by only $36,000 per year. under these conditions, compute the internal rate of return to the
nearest whole percent.