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

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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. Hentie'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. Click here to view Exhibit.128-1 and Exhibit 128 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 the nearest whole percentage, l.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 intemal rate of return? (Round your answer to the nearest whole percentage, l.e. 0.123 should be considered as 12%.) Lukow Products is investigating the purchase of a plece of automated equipment that will save $140,000 each year in direct labor and inventory carrying costs. This equipment costs $730.000 and is expected to have a 6 -year useful life with no salvage value. The company's required rate of return is 16% on all equipment purchases. Management anticipates that this equipment will provide intangible benefits such as greater flexibility and higher-quality output that will result in additional future cash inflows. Click here to view Exhibit 128.1 and Exhibili128.2, to determine the appropriate discount factor(s) using table. Required: 1. What is the net present value of the plece of equipment before considering its intangible benefits? (Enter negotive amount with o minus sign. Round your final answer to the nearest whole dollor omount.) 2. What minimum dollar value per year must be provided by the equipment's intangible benefits to justify the $730,000 investment? (Do not round intermediate calculetions. Round your answer to the nearest whole dollar omount.)

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