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.

In each of the cases below, assume division x has a product that can be sold either to outside customers or to division y of the same company for use in its production process. the managers of the divisions are evaluated based on their divisional profits. case a b division x: capacity in units 200,000 200,000 number of units being sold to outside customers 200,000 160,000 selling price per unit to outside customers $ 90 $ 75 variable costs per unit $ 70 $ 60 fixed costs per unit (based on capacity) $ 13 $ 8 division y: number of units needed for production 40,000 40,000 purchase price per unit now being paid to an outside supplier $ 86 $ 74 required: 1. refer to the data in case a above. assume in this case that $3 per unit in variable selling costs can be avoided on intracompany sales. a. what is the lowest acceptable transfer price from the perspective of the selling division? b. what is the highest acceptable transfer price from the perspective of the buying division? c. what is the range of acceptable transfer prices (if any) between the two divisions? if the managers are free to negotiate and make decisions on their own, will a transfer probably take place?