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.

compute the machine’s internal rate of return to the nearest whole percent.

1b.
compute the machine’s net present value. use a discount rate of 14%. (any cash outflows should be indicated by a minus sign. round discount factor(s) to 3 decimal places.)

1c.
suppose that the new machine would increase the company’s annual cash inflows, net of expenses, by only $25,790 per year. under these conditions, compute the internal rate of return to the nearest whole percent.