, 02.12.2019 22:00

# Henrie’s drapery service is investigating the purchase of a new machine for cleaning and blocking drapes. the machine would cost \$113,730, 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. use exhibit 13b-1 and exhibit 13b-2, to determine the appropriate discount factor(s) using table. required: 1. what is the machine’s internal rate of return? (round your answer to whole decimal place i. e. 0.123 should be considered as 12%.) 2. using a discount rate of 10%, what is the machine’s net present value? interpret your results. 3. suppose the new machine would increase the company’s annual cash inflows, net of expenses, by only \$27,000 per year. under these conditions, what is the internal rate of return? (round your answer to whole decimal place i. e. 0.123 should be considered as 12%.)

### Another question on Business

Jason day company had bonds outstanding with a maturity value of \$300,000. on april 30, 2017, when these bonds has an unamortized discount of \$10,000, they were called in at 104. to pay for these bonds, day had issued other bonds a month earlier bearing a lower interest rate. the newly issued bonds had a life of 10 years. the new bonds were issued at 103 (face value \$300,000).