Business, 24.03.2020 00:13, lilybear1700

Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking drapes. The machine would cost $137,320, 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.1. Compute the machine’s internal rate of return to the nearest whole percent.
2.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.)
3. Suppose that the new machine would increase the company’s annual cash inflows, net of expenses, by only $38,090 per year. Under these conditions, compute the internal rate of return to the nearest whole percent.

Answers: 1

Show answers

Other questions on the subject: Business

Business, 21.06.2019 22:30, TexaSuperdude

For many years, kellogg's frosted flakes, a ready-to-eat breakfast cereal, was perceived as a cereal for children. tony the tiger, a cartoon character, extolled frosted flakes, and advertisements depicted children enjoying the product with tony in competitive situations. recently, in response to declining sales of frosted flakes, the cereal maker has adopted a new series of advertisements that show adults admitting that they enjoy frosted flakes, too. kellogg's is attempting to

Answers: 1

continue

Business, 22.06.2019 05:30, tommyaberman

Sally is buying a home and the closing date is set for april 20th. the annual property taxes are $1,234.00 and have not been paid yet. using actual days, how much will the buyer be credited and the seller be debited

Answers: 2

continue

Business, 22.06.2019 14:30, 20guadalupee73248

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false

Answers: 1

continue

Business, 22.06.2019 20:40, IkweWolf1824

Which of the following would indicate an improvement in a company's financial position, holding other things constant? a. the inventory and total assets turnover ratios both decline. b. the debt ratio increases. c. the profit margin declines. d. the times-interest-earned ratio declines. e. the current and quick ratios both increase.

Answers: 3

continue

Do you know the correct answer?

Henrie’s Drapery Service is investigating the purchase of a new machine for cleaning and blocking dr...